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Home My WebLink About09-18-23 Correspondence - Federal Home Loan Bank of Des Moines - Corporate Social Responsibility Report FEDERAL HOME LOAN BANK OF DES MOINES September 13, 2023 Hi. My name is Kris Williams. I am the president and CEO of the Federal Home Loan Bank of Des Moines (FHLB Des Moines). I want to introduce you to FHLB Des Moines, because even though we are not located in your town or state, we have a great impact on it. To understand our involvement in your community, we start with your local financial institutions. Our core mission is to provide liquidity to our member financial institutions, which consist of banks, credit unions and insurance companies, so they can in return provide funding in their communities for housing, farming and community development. We are a member-owned cooperative that serves 13 states, Montana being one of them, and three U.S. territories. For more than 90 years, we have provided funding for our members through all economic cycles including calm markets and periods of stress. FHLB Des Moines currently provides just over $3.7 billion in advances for the 43 members in Montana. We have supported the origination of $162 million in mortgages in Montana. We help fill in the gap between deposit growth and loan demand. We also partner with our members to provide funding and grants that promote affordable housing and community and economic development. Communities across Montana have received more than $18.8 million in grants for housing through our Competitive Affordable Housing Program and nearly $12.5 million in down payment assistance. Those funds come from the income generated by the business we do with our members, not from the U.S. taxpayer. Enclosed are some materials about FHLB Des Moines and the FHLBank System, of which we belong. I hope you take the time to look them over and reach out to us if you have any questions. We are proud of the positive impact FHLB Des Moines has had for our Montana financial institution members and, through them, for homeowners, renters and communities just like yours. If you would like to learn more about FHLB Des Moines, please visit our website at fhlbdm.com or contact Julie DeVader, Public Relations Manager, at 515.412.2172 or jdevader(a)fhlbdm.com. Sincerely, Kris Williams President and Chief Executive Officer 909 Locust Street,Des Moines,IA 50309-2803 800.544.3452 1 fhlbdm.com FEDERAL HOLE LOAN HANK OF DES MOINES Message from a Member in Montana Tom Boos President and CEO of Billings Federal Credit Union Billings, Montana September 14, 2023 Every day for more than nine decades, the Federal Home Loan Bank System (FHLBank System) has worked to improve the lives of millions of Americans, and the communities we serve at Billings Federal Credit Union (Billings Fed) witness that impact first-hand. Billings Fed began our relationship with the FHLB System in 2006. For 12 years we pledged our assets but weren't active users of the liquidity products. By 2018, we needed additional liquidity to be able to continue serving our members' borrowing needs. Since we had a line already established, we were able to take down our first advance (loan) quickly and easily. Since the Federal Home Loan Bank of Des Moines (FHLB Des Moines) has been able to deliver liquidity reliably and consistently at a scale few other wholesale funding providers can match, we continue to utilize them as our needs dictate. While Billings Fed offers the traditional products one would expect of a community financial institution, we also serve a subset of underserved members who do not typically find it easy to obtain credit from financial institutions. Our mission is to improve our members' lives, and our business model supports our mission. We support our members by delivering loan products to many members who are unable to obtain credit elsewhere and providing trusted advice to help them improve their financial health. In part, FHLB Des Moines makes these actions possible by providing access to low-cost, reliable funding. Because of this liquidity, more affordable credit options are routinely available to our members. Recently, we expanded our partnership with FHLB Des Moines to include the Mortgage Partnership Finance° program- a unique mortgage product that allows us to share credit risk with FHLB Des Moines. By sharing risk, Billings Fed receives benefits we can't find with other investors including better pricing and waived loan level pricing adjustments. - More importantly, our members have greater access to fixed-rate home loans at a better rate. This is another way FHLB Des Moines gives us the tools to deliver value to folks who may not be approved elsewhere or for whom the cost of funding may put homeownership out of reach. Without wholesale funding from FHLB Des Moines, many of our members would find it difficult to access affordable solutions that would support their credit needs. We know the FHLBank System is a critical piece of the nation's financial infrastructure. Safe, sound, and reliable access to capital fosters a vibrant Montana economy. As a proud member of FHLB Des Moines, Billings Fed appreciates our partnership. Together, we play a pivotal role in serving our members and communities. 909 Locust Street,Des Moines,1A 50309-2803 800.544.3452 1 #hlbdm.com TOGETHER WE IMPACT KOMIM Federal Home Loan Bank of Des Moinespartners with localinstitutions DES MOINES Montana communities.We work side-by-side with member-owners to provide , to fulfill • the dream of homeownership,send . graduate , an entrepreneur open their own business.See how we are impacting lives each . , 7 F, /2 31 43 every day. i CREDITMMERCIALINSURANCE BANKS UNIONS COMPANIES MEMBERS STRENGTHENING COMMUNITIES MONTANA FHLB Des Moines member financial institutions play a critical role in meeting the affordable housing needs of their communities.FHLB Des Moines offers our member-owners a variety of products to support the purchase, CONNECTIONS construction or rehabilitation of affordable housing. COMPETITIVE AFFORDABLE DOWN PAYMENT FHLB Des Moines HOUSING PROGRAM PRODUCTS Board of Directors Joe Kesler 21654 2,380 Director First Montana Bank HOMES HOMES Ed Garding $18,8 M $12;5 Mi Independent Director IN GRANTS INGANTS FHLB Des Moines Advisory Council t,f Iv Andrea Davis Executive Director PROVIDING FINANCIAL STRENGTH Homeword The safety and resiliency of the Federal Home Loan Bank of Des Moines provide member institutions with the financial stability to access liquidity through all economic cycles. FHLB Des Moines Relationship Manager ^� Eric Jensen rL J' ejensen@fhlbdm.com 206.434,0581 $33 B $162 M $576 M IN ADVANCES IN MORTGAGE IN LETTERS OF PROGRAMS" CREDIT All Data as of 6130,2023 unless othefivise stated -includes all mortgage product activity since inception FEDERAL HOME LOAN BANK OF DES MOINES FEDERAL HOME LOAN BANK SYSTEM LOCAL COMMUNITIES EVERYWHERE The Federal Home Loan Bank(FHLBank) System is a leading financial lender, serving as one of the largest sources of funding for community lending in the United States. Established by 0 MEMBER Congress in 1932,the FHLBank System is comprised of 11 I$j FINANCIAL INSTITUTIONS regional Banks that provide funding and liquidity to approximately 6,600 banks, credit unions, insurance companies and community Members use FHLB Des Moines products, development financial institutions (CDFls).With total assets of over such as advances and the Mortgage $1.4 trillion,the FHLBank System receives no taxpayer funding Partnership Finance Program,as a source of and serves as one of the largest sources of funding for community liquidity and low lost funding lending in the United States. FEDERAL HOME FEDERAL HOME LOAN BANK OF DES MOINES LOAN BANKS Federal Home Loan Bank of Des Moines is a member-owned Investors worldwide purchase FHLBank' bonds for their safe and solid return cooperative that provides liquidity and funding solutions to financial institutions in 13 states and three U.S. Pacific Territories to support mortgage lending, economic development and affordable housing in the communities they serve.The Des Moines WORLD WIDE Bank is one of 11 Banks that make up the Federal Home Loan INVESTORS Bank System. FHLBank Debt is Rated AA+by S&P and AAA by Moody' Investor Services 11300NEARLY MEMBERS 'J MAR NORTHERN ASAMOAN GUAM $1802 B ISLANDS TOTAL ASSETS As of 613012023 MEMBERS BY CHARTER 886 265 32 70 6 COMMERCIAL CREDIT THRIFTS INSURANCE CDFIs BANKS UNIONS COMPANIES HOUSING PROGRAMS FHLB Des Moines contributes 10 percent of its net income each year to $844 M housingrants. Grants assist homebu ers with down payment and closing g y p y g IN GRANTS cost assistance, construction, purchase or rehabilitation of affordable housing. Low- to moderate-income households, including first-time and Native American homeowners, can benefit from these programs. Since 124 K 1990, hundreds of millions in grant funding has provided thousands of homes for qualifying homebuyers. HOMES CREATED OR PRESERVED CORE BUSINESS ISO $114ol B $19ol B $7m5 B IN ADVANCES IN MORTGAGE IN LETTERS OF PROGRAMS* CREDIT FOR MORE INFORMATION 800.544.3452 1 www.fhlbdm.com Core business data as of 613012023 1 Housing program data as of 1213112022 1 Number includes all MPF'products Corporate Social Responsibility Report ,June 2023 22_ wa. IL IL / .,r _ 1 �- �.- j1►1- I .tee �a* � - sr a i u IL A NATION OF LOCAL LENDERS �L IN 1 INTRODUCTION TO FEDERAL HOME LOAN BANKS INTRODUCTION TO FEDERAL HOME • BANKS The Federal Home Loan Banks (FHLBanks) were the U.S., so that we remain highly responsive to established in 1932 as Government Sponsored their needs. As separate entities, each FHLBank Enterprises (GSEs) with the core mission of providing has its own board of directors and management a reliable and readily accessible flow of liquidity to team. We raise funds by issuing debt securities member financial institutions. Reflecting regulatory (Consolidated Obligations) through the Office of and industry changes,the FHLBank System has Finance, which is a joint office of the 11 FHLBanks expanded overthe decades since ourfounding.We and acts as the FHLBank System's fiscal agent. serve approximately 6,500 commercial banks, credit unions, insurance companies,thrifts, and community As of December 3l,2022,the FHLBanks had a combined development financial institutions (CDFIs). Each $1.25 trillion in assets and approximately 3,300 FHLBank is individually owned and capitalized by employees. During the year ended December 31, 2022, the FHLBanks earned $3.2 billion of net its members,who purchase stock in their respective FHLBank. By providing members with access to income and set-aside $355 million for Affordable often same-day funding,the FHLBanks enlarge Housing Program (AHP) assessments.,, the aggregate supply of market liquidity that is The FHLBank System is subject to robust and available to credit-worthy borrowers.This supports independent federal regulatory oversight by the the creation of credit for residential mortgages Federal Housing Finance Agency (FHFA). FHFA and targeted community development—which establishes and enforces regulations, and other has flowed uninterrupted for 90 years since our regulatory guidance, designed to ensure that each founding in 1932,through all economic and credit FHLBank operates in a safe and sound manner. cycles. Throughout our history,we have fulfilled In addition to ensuring we remain adequately this mission to bring tangible benefits to the U.S. funded with sufficient permanent capital, financial system, homeowners, and communities. liquidity, and reserves, FHFA conducts in-depth The FHLBank System comprises 11 regional districts annual examinations, regulates compliance to and the Office of Finance. Our regional structure our congressionally-chartered mission, and underpins oursuccess. It enables us to build deep conducts ongoing monitoring of each of the relationships with members and communities across 11 FHLBanks and the Office of Finance. The 11 FHLBank districts enable us to be responsive to local needs Des Moines Topeka Chicago San Francisco Indianapolis Cincinnati Pittsburgh Boston © 0 New York O Atlanta 0 0 0 00 0� Dallas o U.S.Territories Northern Mariana Islands Guam American Samoa Puerto Rico Virgin Islands 91 OUR PRODUCTS AND SERVICES GA Reliable access to liquidity through our products and services enables our members to lend with confidence Whenever a need arises,facilitating credit for, among other things, mortgages,job creation, and economic development. We fulfill our mission of delivering liquidity to members through short-, intermediate-, and long-term loans called advances, participating In mortgage purchase programs, and by offering letters of credit to help our members secure municipal deposits and provide support for a variety of other public purposes. Advances are collateralized loans made to members, Through these mortgage purchase programs, secured primarily by individual mortgage loans, FHLBanks purchase fixed-rate 15-year to 30-year housing and real estate-related collateral such as mortgages secured by one-to-four family residential mortgage-backed securities (MBS),commercial real properties. Programs vary across the FHLBank System Kv estate loans, and government and agency securities. and include the Mortgage Partnership Finance® Advances are the linchpin of liquidity programs for (MPF®) Program administered by FHLBank Chicago for our members. During 2018-2022,we originated an six FHLBanks- Boston,Chicago, Dallas, Des Moines, average of$7.4 trillion of advances a year,serving Pittsburgh, and Topeka -the Mortgage Purchase as an indispensable source of funding for members Program (MPP) offered by FHLBank Cincinnati and across the U.S.2 During the same period,the vast FHLBank Indianapolis, and the Mortgage Asset majority (64%) of the collateral pledged to FHLBanks Program (MAP®) offered by FHLBank New York. for member advances was housing-related collateral - including single-family and multifamily mortgage Letters of credit are issued by the FHLBanks on loans.3 This strong collateral linkage to housing helps behalf of members to support obligations of the our members provide significant funding for housing members (or the members'customers) to third and community development. parties and are secured by the collateral pledged by the members. Letters of credit have many practical 104 Most FHLBanks participate in mortgage purchase uses such as assisting members and non-member programs in which FHLBanks directly purchase housing associates in facilitating residential housing mortgage loans from members. This gives members finance, community lending, and asset-liability yet another means to access liquidity, while management, and providing liquidity. For example, providing sellers and originators with an alternative FHLBank-issued letters of credit may be used to to the traditional GSE securitization channels.The support deposits from federal,state, and local FHLBank mortgage purchase programs are unique in government agencies.A letter of credit may also that they incent long-term risk management. Since be used to facilitate a community bank member's members and the FHLBanks share the risk of default, lending to its customers by enhancing the credit our programs compensate members for managing quality of the member's letter of credit,which may be credit risk of mortgages sold through our programs. issued by the member to help support its customer's obligations as a tenant under a lease agreement. With the backing of the FHLBank credit rating, Year-end advances balance (Billions) communities benefit as investors are able to more I $819 readily provide funds for projects that can profoundly $729 $642 shape communities for the better. $423 Membership composition (Year-end 2022) $351 Insurance 1.1% Community Development Companies Financial Institutions Savings 2018 2019 2020 2021 2022 Institutions Year-end letters of credit balance (Billions) $166 $178 $164 $169 Credit $151 Unions Commercial Banks 2018 2019 2020 2021 2022 7 AFFORDABLE HOUSING • DEVELOPMENT PROGRAMS The FHLBanks are significant contributors to affordable housing and community development across the U.S. We partner with our members to provide funding and grants that promote affordable housing and economic development within their communities. Our programs include the Affordable Housing Program (AHP), Community Investment Cash Advance (CICA) including the Community Investment Program (CIP),and additional district-specific programs. Affordable Housing Program AHP provides subsidies to assist in the purchase, construction, or preservation of rental and owner- occupied housing. For owner-occupied housing,AHP assists families and individuals with incomes up to 80% of area median income (AMI). For rental housing projects, at least 20%of the units must be occupied by and affordable for households whose income does not exceed 50%of AMI. These subsidies may be in the form of a grant or a reduced interest rate on an advance. By statute,the FHLBanks contribute a minimum of 10%of our annual net income to the AHP.'The FHLBanks also make voluntary contributions to programs typically funded by the AHP, CICA, and other discretionary district-specific programs, above the required AHP contribution. Community Investment Cash Advance CICA programs-5 offer funding to members at a discounted rate compared to our standard advances in order to support projects that make a positive difference in communities.This includes housing for low-and moderate-income families and economic development activities that benefit low-and moderate-income households,small businesses, and lower-income communities. Community Investment Program CIP, a leading program under CICA, offers discounted advances to members for investment in housing for low-and moderate-income families (Housing CIP), and for economic development activities that benefit low-and moderate-income families (Economic Development CIP). Additional CICA Programs Some FHLBanks offer additional community lending programs and grants to provide financing for economic development projects•for targeted beneficiaries in their districts (referred to as Additional CICA Programs in this report). FHLBanks also provide additional district-specific programs that support affordable housing and targeted economic development, including programs for small businesses, underserved geographic areas, and defined income levels. Our tailored programs are valuable sources of funding for communities throughout the U.S. and catalysts for economic development and homeownership. , s j_ I I iI r� 1 l AOL, Ali IMPACT OF FEDERAL HOME LOAN BANKS z DRIVING IMPACT GUIDED BY OUR MISSION ' (771* ' cam ' Pw Mission . . .. and community Borrowers and Homeowners Financial Communities ( ~ ' (through our members large System . . (through our members large r and small) _ and small) © 0 Helping • Strengthening Supporting Address Borrowers MemberLocal Social and ' Housing - • . Economies Environmental ` Homeowners a • Reliable Outcomes Funding Foundational Principles Commitment to Diversity and Inclusion: (� , D&l efforts, inclusive culture for employees and members/ borrowers, business partners and industry (e.g., development opportunities, diverse vendors) i � I Strong Risk Management and Governance: Multi-layered governance structures, robust data security, business ethics and risk i management policies, FHFA oversight U, 10 , f.. a 1 l . G s • i t � BORROWERS AND HOMEOWNERS SERVING RENTERS , BORROWERS , • • Across the U.S.,our programs support the communities AHP grants and loans enable access to housing our members serve by providing access to funding for underserved populations by funding qualified to build or preserve affordable housing, facilitate affordable housing projects.These projects assist homeownership,and boost economic development people in need -very low-income households, activity. individuals with special needs,seniors,veterans, at- risk youth,and people experiencing homelessness, Affordable Housing Program among others-to have an affordable place to call Between 2018-2022, FHLBanks committed $1.6 billion home. in funding through the AHP.91n 2022,the FHLBanks' combined net income resulted in AHP assessments Our members work in partnership with local of$355 million,which are available for use in 2023. In affordable housing developers and community addition to statutory AHP assessments,the FHLBanks organizations to sponsor projects that are service collectively made voluntary AHP contributions totaling enriched, meaning these developments can offer $17 million during the year.Separately,certain FHLBanks a menu of supportive services, such as counseling, also made voluntary contributions to community vocational and educational services, medical investment programs,which totaled $44 million support, and other forms of assistance funded during the year.10 through complementary sources. _ VOICEOF billion Amount allocated via Providing li• • • members to Affordable Housing finance affordable housing Program 2018-2022 Des Moines) «We're very thankful for the partnership with the Federal Home Loan Bank.Without[FHLBank Affordable • accessible rental Des Moines],we wouldn't have been able to bring in or keep 440 units of affordable housing to the housing for the disabled state of Utah since 2017.) (FHLBank i• • Vice President Zions Bank roll, Down Payment Assistance As part of ourAHP,we provide down payment assistance to help low-and moderate-income households,including first-time homebuyers, overcome one of the greatest VIDEOWATCH Q barriers to achieving the dream of homeownership -saving for a down payment-as these grants can Affordable Housing Program support supplement homebuyer savings to cover down for affordable housing development in payment and closing costs. Down payment initiatives Freeport, ME. are a successful strategy to increase access to homeownership and a particularly important tool for reducing wealth disparity." 14 PIS pe A 0 Homeownership Opportunities Program (HOP) helps first-time homebuyers with down payment assistance. In 2022, FHLBank , ~' Indianapolis awarded $189,300 in HOP grants to 38 households. Darius Jones,recipient of HOP grant,sits on the porch of his home with his fiancee and child. Photo credit.Steve Koss,Model D Media. - I Homeownership Counseling provide access to tools and resources that can bridge Another area of focus for the FHLBanks is our such short-term emergencies, and offer lifelong commitment to preparing borrowers for the financial literacy education resources for successful responsibility of homeownership and helping homeownership,encouraging community stability. homeowners remain in their homes, so they can build credit, generational wealth, and equity. Homelessness Services These efforts come to life through our members' People experiencing homelessness and those who partnerships with housing counseling agencies. Our are at risk of losing their home are a crucial focus grants made to these organizations help borrowers as part of our mission.The FHLBanks work with our access education, information, and resources that members,state housingfinance agencies, Continuum on guide them through the home-buying process. of Care organizations, and the broader homeless service provider network in our districts to provide 00 Unplanned events like medical emergencies funding that can address crucial local needs. 00 or unexpected home repairs can often result in The funding can also lead to innovative housing unforeseen costs. This unfortunately can inhibit solutions, such as homelessness prevention and on homeowners' ability to make timely payments on diversion,which may otherwise be overlooked by 00 their mortgage loans and may lead to the loss of traditional funding. 00 their homes. Local housing counseling agencies ConstructingCASE STUDY: • • Preserving homeownership for • OR • •p• :. York) (FHLBank Pittsburgh) FHLBank New York awarded a $431,000 AHP subsidy In 2022, First Columbia Bank&Trust Co. received to St. Joseph's Carpenter Society for the Camden a$650,000 grant through FHLBank Pittsburgh's Home Repair Program project,which supported AHP for converting the former West Street Church health and safety repairs to 25 single-family into transitional housing for homelessness relief I� dwellings for households throughout Camden, NJ. services.The project included nine rental units, om 60% of the households earn less than 50%of the with five units dedicated to those transitioning area median income. from homelessness to permanent housing, built in partnership with local nonprofits and federal,state, and local funding. 15 Community Housing In 2022, we provided $3.6 billion to our members in funding through CIP, including housing advances and - economic development advances.120f those advances, Housing CIP advances totaling$3.2 billion went to support affordable housing projects. Our members can use these funds to finance bridge loans (a type of short-term loan that can be used until longer-term financing is secured),construction loans, and permanent loans to support housing projects,such as affordable housing and community and government buildings,in addition to economic development projects. These special programs can enable our members to fund housing projects and activities that revitalize neighborhoods and strengthen relationships within their local communities. billion Advances extended via Community Investment Program to support affordable housing in 2022 Housing6L: ��A • • - C. Francisco) .Y i It nette Briscoe WATCH VIDEO r Lion Creek Crossings, located in Oakland,CA,in an area with some of the lowest incomes in the region,is a catalyst for community renewal and a place where families and seniors have an opportunity to connect with one another and with services and programs that help them thrive.The project received a total of$2.9 million in AHP grants from FHLBank San Francisco, in partnership with members Cathay Bank and Pacific Western Bank,and former member MUFG Union Bank. , , �1 %�` �,�a�,�.�� '' eta ,.� . - � Wit"�#• Y .\ .r �' yi y�•ti: f _. :�� 1. � � _E' x: �,g �'} tip. ,.f�Ar _..��• � - r aw vd Ita COMMUNITIES F LOCALSTRENGTHENING • • The FHLBanks promote investment in local communities through economic development CASE STUDY: projects, programs for small businesses, and Community development fun• • targeted local development initiatives. Topeka) - Supporting Small Businesses Our members can use our discounted advances offered through Economic Development CIP and Additional CICA Programs to help small businesses Through discounted Community Development expand and drive job creation in a diverse range of Program funding,FHLBank Topeka member NBC industries that are essential to communities. Oklahoma was able to finance the rehabilitation Ourtargeted and deliberate efforts provide of the Hart Building in the centerof Oklahoma much-needed capital for development initiatives City's historic film row. ranging from farming equipment to hospital and road improvements to environmentally-friendly residential JRCtick here to read more and commercial upgrades. FHLBank-supplied funding enables these businesses to grow,thereby promoting job creation and expansion of the services they can provide,which benefits their customers and communities. vitality of local communities and the well-being of their residents. Our members and partners Helping Communities Thrive can leverage funding to help generate economic Additionally, our funding supports commercial activity, which results in more stable and vibrant initiatives in traditionally under-resourced neighborhoods in the communities they support so communities including shopping centers, office individuals and families can prosper. buildings, hotels, factories, and assembly plants, while also benefiting public facilities like fire Creating Financial Stability department buildings.We believe that the creation In 2022,we provided $1.7 billion through our of thriving communities requires more than just Economic Development CIP and Additional CICA the construction or rehabilitation of housing units. Programs to target economic development projects A robust network of supporting services for local that benefited low-to moderate-income households residents offered by businesses, nonprofits,and and revitalized local economies. Our members and government entities is essential to promote the their community partners used these funds to help support underserved households, neighborhoods, and communities, including creating and preserving jobs and delivering training programs that provided Funding •cal business expansion pathways for economic advancement and future homeownership.With the support of our financing, • our members helped to create and retain more than 10,250jobs in 2022,11 providing valuable sources of Local lenders can access their FHLBank income to individuals and households. membership to further strengthen their relationships with small business clients. In 2021, Century Savings Bank partnered with FHLBank New York to utilize the Business Develo ment Investment in programs pFrs designed to create or Advance(BDA)to finance more than $1 million retain jobs and improve of high-technology,environmentally-friendly billion economic status of upgrades at the Glassboro, NJ,facility of communities through Demountable Concepts,a longtime customer. L 2 0 2 2 A Economic Development This is exactlythe kind of resultthe FHLBank New CIP and Additional CICA York envisioned when it first launched the BDA. Programs 10 M# CASE STUDY: 49 Support for small businesses (FHLBank Chicago) J, 7"_ i� As part of its Community Small Business Advance program, FHLBank Chicago offers 0%interest rate advances to members to fund low-cost loans to small businesses in income-eligible communities in Illinois and Wisconsin— including businesses in agriculture,commercial,service, retail, hospitality and recreation,software,social services, industrial manufacturing,trades,and professional services. Joe and Mary Holle with son,Jonathan. The Holle family ore third-generation corn and dairy farmers from Baldwin, Wl. In response to challenging economic headwinds,the farm utilized a Community Small Business Advance from the FHLBank Chicago and provided by First Bank of Baldwin. The Holle Family used the discounted funding provided from the advance to retain three jobs and purchase a new corn planter,which helps them more efficiently apply seed and fertilizer. � noon d� OR 19 7 SUPPORTING COMMUNITIESTHROUGH ENVIRONMENTAL AND SOCIAL The regionally-based, decentralized structure of the More examples of the swift actions of 11 FHLBanks allows us to be deeply embedded in FHLBanks to support their communities as the communities and districts we serve.As such,the they recovered from disasters are highlighted FHLBanks create programs, initiatives, and funding sources that serve the unique needs of our districts in in the FHLBank-specific pages of this report. time of crisis- both environmental and social. When natural disasters such as hurricanes,tornadoes, floods, and wildfires strike, FHLBanks can step in to Designed to optimize flexibility, our programs are quickly provide members with lower-cost funding engineered to be a financial solution when unique that provides relief for communities in distress. needs arise. For example, during the early stages of Our programs are flexible,so they can be created the COVID-19 pandemic, eligible collateral reflected and rapidly deployed to support disaster recovery the new types of federal loans being made by efforts. For example,we provide zero-or lower-cost lenders to assist in the financial recovery and keep funding for construction, repair, and rehabilitation employees on payrolls so they could make their - of residential housing and commercial properties mortgage and rent payments.We rapidly delivered throughout the U.S. an additional $158 billion in advances in Q12020 Many FHLBanks have programs that go beyond compared to Q4 2019 to our members.15At a time like - no other,our vital role as a reliable source of funding lower-cost funding and provide meaningful grants to for members and their communities helped provide homeowners or renters who are displaced, helping stability in the banking and financial industries. them to repair, rebuild, or relocate homes. For community partners looking to rebuild in the wake of a disaster, our programs can provide a pivotal source of funds to fill gaps in insurance orfederal rebuilding CASE STUDY: programs. Community liquidity "• during Real Results when Crises Strike the pandemic (FHLBank _ We have answered the call to help in several recent Cincinnati, FHLBankAt[anta) natural disasters: • FHLBank Dallas in the wake of the devastation of FHLBank Cincinnati created the RISE Hurricane Ida in Louisiana Program,a dedicated offering of$2 billion • FHLBank New York in response to severe in 6-month advances at 0%interest to - earthquakes in Puerto Rico support COVID-19 related assistance. • FHLBank Cincinnati after tornadoes in Dayton, OH «The RISE Program was a tremendous help - to our bank as we worked around the clock to • FHLBank San Francisco in response to devastating keep paychecks in the hands of workers in the wildfires in California communities we serve.Thank you FHLB Cincinnati - • FHLBank Atlanta in response to damage caused by for helping us help others.' Hurricane Ian in Florida President& CEO - The FHLBanks have also made contributions in the Farmers Bank&Trust Compony _ wake of other disasters-donating$2 million towards _ relief efforts after Hurricanes Harvey and Irma.14 I COVID relief program: FHLBank Atlanta provided approximately$6 billion in discounted advance funding in response to the COVID-19 pandemic and provided collateral relief and enhanced AHP programs to meet unique needs arising from the pandemic. 20 As needs arose and evolved throughout the COVID-19 Workforce Support for Communities po pandemic,we quickly developed and deployed We proudly support our workforce as our employees solutions, including new programs to meet those needs. create positive change in communities. These included providing the flexibility to pledge new Our employees are active in neighborhoods across collateral in the form of Paycheck Protection Program the country through employee-giving campaigns RO (PPP) loans. Select FHLBanks also worked to provide and organization-sponsored volunteer work. po collateral relief as needed to help members facing other Across the 11 FHLBanks,we support charities and unique challenges. volunteer groups and encourage our employees to pe contribute to the causes they are passionate about. CommunityCASE STUDY: engagementC. C• • Pe °e FHLBank Boston employees participated in a j Habitat for Humanity Build day in Massachusetts g and helped to fill bags of donated food for the a United Way Thanksgiving Project,which provides all the ingredients for a Thanksgiving meal to families in need in Greater Boston. ISO CASE STUDY: Sustainable activities (FHLBank Dallas) Through its newly formed ESG Committee,Sustainability Subcommittee,and Climate Risk Subcommittee,FHLBank Dallas undertook several initiatives in 2022 related to environmental and sustainability issues.Efforts included commissioning energy,water,and green building audits to help identify future areas of opportunity while continuing long-held practices such as recycling and lowering energy and water consumption.Key 2022 accomplishments include: 00 100% 95% 50% 94% replacement of fluorescent replacement of exterior reduction in printers reduction in annual paper lighting in the interior dock safety and security lights and copiers. orders from 3,942 reams in corridor with energy-efficient with energy-efficient 2019 to 217 reams in 2022. LED lighting. LED lighting. 81% 62000 33 reduction in annual orders of disposable water bottles automation projects implemented in 2022 and printer toner cartridges from prevented from entering employee training on several software programs 164 cartridges in 2019 to 31 landfills in 2022 by use provided to increase workflow efficiencies, cartridges in 2022. of water-bottle refilling digitize knowledge management,and reduce waste. stations. 21 r r ml 1 _J i i i i I, FINANCIAL SYSTEM AND MEMBERS PROVIDING MEMBER LIQUIDITY The FHLBanks reflect the breadth and diversity of the U.S. financial system, and we serve as trusted VOICE OF • partners to financial institutions of all types and sizes. liquidity to members The inherent diversity of the U.S.financial system Providing 0W requires that we serve financial institutions on a 0W customized basis. For example,while a very large, "The Federal Home Loan Banks have provided systemically important institution may place a high critical liquidity to credit unions, including many OR value on our ability to provide it with immediate smaller community lenders that often do not have lW and reliable market execution at scale, many access to other sources of low-cost funding.)? small-to mid-sized members need a more OR consultative-based approach to funding and liquidity Senior Regulatory Affairs Council OR solutions, and rely on FHLBanks for our knowledge, NAFCU 00 resources, and market position to access the capital i markets. This agility in serving members enables us 00 to help financial institutions fully unlock the value Market Access for Small Lenders Pa of their FHLBank membership, and is particularly The majority of our members are smallerfinancial effective at leveling the playing field by providing institutions and have assets under$10 billion.16These PO smaller or rural members with tools that help them smaller members include financial institutions often 00 compete with their larger peers, helping to reach serving rural and underserved communities. Smaller underserved markets. banks,credit unions,and CDFIs are proportionately 00 the largest users of Federal Home Loan Bank services, 0 using advances as a greater share of their assets than large members.17The reliability and timeliness of VOICE00 OF • funding made available by the FHLBanks gives our 00 Members . _ benefitssmaller members the confidence to lend even in less 0-0 highlighted Membership certain economic conditions,which fosters greater of FHLBank (FHLBank consumer choice and ultimately lowers the cost of 00 Topeka, FHLBank Chicago) borrowing. 0-0 Access to Member Services 0 «Chickasaw Community Bank has largely used Our members recognize and appreciate the operational benefits to their businesses gained the Federal Home Loan Bank of Topeka for from their partnerships with FHLBanks. In addition liquidity needs. It has been a lifesaver, a lifeline to ready access to liquidity,secondary market at times for us.There are some of these projects that we could not do without the Federal Home outlets for their mortgage loans, and efficiencies and 00 liquidity from our letters of credit, members also gain Loan Bank.jy convenient and affordable access to safekeeping, CEO depository, electronic funds transfer, and � Chickasaw Community Bank settlement services. Our products are designed to be cost effective, efficient, and flexible to provide our members with reliable options to manage their liquidity needs and i I� The System allows life insurers to access diversify funding sources, reducing overall funding additional,short-term liquidity to meet claims costs and increasing their financial stability. Members while providing flexibility during all economic can efficiently access the funding they need through cycles,and that liquidity provided by the online platforms or phone calls, and tailor amounts System to its insurance company members and terms to fit both short-and long-term business is extremely important. objectives. Each member works with an FHLBank Regional CEO and CIO representative to identify and meet its unique needs. 1 Allionz { i 23 j Leadership in LIBOR Transition system and better manage risks associated with The FHLBanks have been strong market leaders offering SOFR-based credit products to customers. in supporting the industry-wide transition from the London Interbank Offered Rate (LIBOR) to the Funding in all Economic Cycles Secured Overnight Financing Rate (SOFR). From The FHLBanks have a track record of meeting member very early in the benchmark rate reform process, needs,particularly during challengingperiods.0ur the FHLBanks understood the importance of LIBOR strong asset quality,high levels of regulatory capital, transition for the U.S. financial system, and as one and access to deep pools of liquidity allow us to support members through economic cycles. of the largest issuers of debt securities and users of interest rate derivatives globally, we were early For example,we provided crucial liquidity during the adopters and quickly became leaders in SOFR usage. Global Financial Crisis(2007-2008)and the early stages of ' In 2022, the FHLBanks issued approximately $391 the COVID-19 pandemic(2020). billion SOFR-linked floating rate note securities, Duringthe Global Financial Crisis,outstanding member a more than five-fold annual increase from 2021 advances increased by approximately 40%(by$258 issuance.18This market leadership helped pave the billion from second quarter 2007 to fourth quarter2008). way for broader market acceptance and adoption The FHLBanks were the largest source of crisis-related of SOFR, and facilitated our members' ability to liquidity until the Federal Reserve acted in March 2008.20 transition from LIBOR to SOFR. In the early stages of the COVID-19 pandemic,outstanding Since we began issuing SOFR-linked debt member advances increased by25%(by$158 billion in securities in 2018, we have consistently expanded Q1 2020) prior to Federal Reserve and fiscal actions.21 our offerings of SOFR-indexed advances, with the goal of providing our members with a range of funding solutions to support their businesses in a VOICE OF STAKEHOLDERS: post-LIBOR world. At year-end 2022, outstanding advances linked to SOFR stood at approximately Liquidity provided $174 billion, a more than twelve-fold increase from -nab[es members to operate 2021, while outstanding advances linked to LIBOR • - fell by nearly 60% over the same period of time.19 ses Additionally, we have provided our members «No one can forget the critical role they[the with educational resources and guidance on FHLBanks] provided in 2008,orearlyin COVID. the transition by hosting webinars and other educational events to deepen the understanding Institute Fellow of this reform to the U.S. banking and financial Urban Institute Liquidity provided by FHLBanks enables members to operate through crises Financial Crisis COronavirus 1,000 Pandemic 900 800 700 600 500 400 300 200 100 $B 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 Quarterly advances outstanding FHLBankAdvances 24 VOICEOF • Providing e •e • • to large , • small members (FHLBankPittsburgh, FH • FHLBanks play a huge role across the country. 661 cannot overstate the importance of the Federal There are so many places in our area that can benefit Home Loan Bank for timely and reliable liquidity.If we K� from their funding and support,and we are fortunate look back at the beginning of the PPP program,we had that FHLBank Pittsburgh has always responded. 9 no idea what was coming.We were able to quickly raise $50 million [from our FHLBank]. 71 President President and CEO Bonk of Monroe Bank of Clark County _ l , - LU L L1 WATCH � y = VIDEOO First Financial Bank in Abilene,TX, prides itself on being a community bank that serves customers through all stages in life.The bank uses FHLBank advances to meet a variety of funding needs such as seasonal agricultural lending. It also uses the Mortgage Partnership Finance®Program to free up liquidity for home lending and has tapped FHLBank grants for disaster assistance in the wake of Hurricanes Harvey and Ike. Sharing Expertise so Members Succeed In addition to our financing activities,we are proud to serve our members in ways that reflect their unique needs, lending our expertise and delivering market information and product solutions that help members grow, thrive, and optimize their businesses.Additionally,we provide products and solutions that assist in interest rate risk management,such as SOFR adoption, and support members' ability to hold loans on their balance sheets and give them the capacity to keep credit flowing to their communities. 25 ,1 1 w �� ,yt�► AVA AX e~ J r •� r .J t• E t E t t n FOUNDATIONAL PRINCIPLES -_ n n n E DIVERSITY INCLUSION HIGHLIGHTS Employees Boards of Directors MR , OR 27 % 0 i OR Women 2 3 % d� Minority d� Diverse Vendors Expense Diverse Dealers awarded to vendors who are women, minority, debt issued through women, minority,and disabled-owned,and non-diverse vendors with disabled-veteran owned capital market dealers diverse spend $ 89 $ 728 - - MillionBillion I _ L 20221 OF i I I 27 COMMITMENT • DIVERSITY & INCLUSION : The 11 FHLBanks along with the Office of Finance backgrounds through our internship opportunities are unified in our commitment to Diversity&Inclusion that provide students with real-world learning (D&I) principles. Our commitment has solidified as experiences and cultivate a talent pipeline for our programs have grown, matured, and expanded FHLBanks and the financial industry at large. to all lines of business.The FHLBanks' commitment extends beyond the walls of our institutions to the communities our members serve and in which our employees work and live. CASE STUDY: Diversity& Inclusion in our Workforce Employee well-being (FHLBank Our commitment to D&I is demonstrated in a variety of ways, beginning with ourworkforce. Each FHLBank has a designated Office of Minority and Women Inclusion officer as part of the senior management team to lead its D&I efforts.We proactively recruit, �� hire, and develop talented employees, including from ;t A under-represented backgrounds.We provide career r 0, ` development opportunities where employees can `. demonstrate their talents and grow professionally and personally. In 2022, our workforce comprised 44% women and 38% minority employees.22 One of the ways we strengthen our diverse workplace and create opportunities for employees is through our Employee Resource Groups (ERG),which are voluntarily established and led by our employees. With a particular focus on women and minority FHLBank Cincinnati uses ERGS to fuel purpose and employees, ERGs provide a venue to share common employee well-being.While a Flexible Work experiences, learn from each other's cultural Arrangement policy was established to support a differences, and grow networks.All employees are healthy work-life balance by providing employees the encouraged to participate in ERGs as we believe flexibility to work from home,the FHLBank they foster cultural understanding and a positive recognized that face-to-face interactions were environment of collaboration. Our employees bring important to building relationships and connections unique and diverse perspectives; ERG programs among employees.Cincinnati's BEING FHLB ERG provide personal and professional development focuses on employees feeling welcome and included through sharing those perspectives. by hosting networking events that provide access and resources that foster personal and professional Another way we encourage our employees' growth and development. Participants also have the opportunity to develop leadership skills and connect professional growth is through tuition reimbursement and internally-sponsored skill development with peers.The group has helped many build stronger and healthier relationships at work and opportunities. These include expert-led learning and create a culture of well-being throughout the development programs that facilitate continuous organization. learning for our employees as they progress in their careers.We also develop talent from diverse 28 CASE STUDY: Professional development through Employee Resource Groups (FHLBank Indianapolis) DUO - LE y' r At FHLBank Indianapolis,employee-driven groups help foster a more inclusive workplace as well as give employees who share common interests or passions a supportive place to collaborate and grow personally and professionally. The Women's Employee Resource Group held two events in 2022 centered around professional development.The group hosted an interactive workshop from Leanln.org titled "50 Ways to Fight Bias"with the focus of combating the unconscious biases women face at work. Later in 2022, a session titled "Ceiling Shattering Tools for Women"was led by a Women in Tech thought leader,Tonya T.Wallace,who gave insights on how women can own their careers by leveraging actionable and practical tools. Additionally,the Bank's African American Employee Resource Group prepared attendees for the new year by hosting a "A Taste of Goal Setting"session in December of 2022.This session provided a high-level overview of goal setting and focused on topics such as:why written goals matter; holistic goal setting;what makes a good goal;and three types of goal-setting tools. Diversity& Inclusion in our Board of Directors Our focus on D&I is a priority for the boards of directors across all FHLBanks.With the goal that our boards reflect the communities we serve,we have focused on efforts to increase diversity in the FHLBanks' boards of directors.We have made progress on both increasing diversity in our boards by interviewing diverse candidates for independent director positions and taking steps for increasing the number of board members from underrepresented backgrounds. In 2022,27%of our directors were women and 23%were minorities. P Vh Ph P 29 (FHLBankCASE STUDY: FHLBank San Francisco's commitment to D&I recognized by NACD Awards Francisco) 'Click here to read more FHLBank San Francisco's majority-diverse board has twice been recognized by the National Association of Corporate Directors(NACD)for leveraging the power of D&I to enhance governance and create long-term value for their organizations and stakeholders. FHLBank San Francisco was among three winners of the annual NACD DE&I Award"'in 2021 and among 20 finalists for the award in 2022.The awards recognize boards that have improved their governance and created long-term value for stakeholders by implementing forward-thinking D&I practices. The composition of the FHLBank San Francisco's board is a result of the value that more than 300 member financial - institutions-who nominate and elect our diverse mix of both member and independent directors-place on D&I. Diversity&Inclusion in our Partnerships responsibility, reinforce the importance of diverse FHLBanks'commitment to D&I is not solely focused dealers in fulfilling the FHLBank mission. Despite a on our employees and directors. Our commitment material consolidation among fixed income dealers extends to our business practices, including our overthe past 25 years,the number of diverse dealers partnership with the financial broker-dealers we has increased to 20 diverse dealers, a historical high. transact business with to execute on our mission. too Fostering and promoting D&I across our dealers is As a result of our focus on supporting diverse a strategic imperative of the FHLBanks. Given our dealers,the percentage of FHLBank debt issuance mission and the significant size of the U.S. banking underwritten by diverse dealers has grown 90 and insurance sector, harnessing the power of diverse significantly in recent years,from just 2.5%in 2016 90 dealers is crucial to serving our members effectively to slightly over 11% in 2022. Diverse dealer issuance 00 and at scale,enabling them to deliver the products volume increased to $728 billion in 2022, compared and services needed to support housing within their to$301 billion in 2021, and higher issuance volume local communities. enabled diverse dealers to capture additional market share with investors, particularly with state and local While the FHLBanks have a long partnership with municipal investors.Throughout 2022,the FHLBanks OPO diverse dealers going back decades,structural conducted strategic business sessions with 16 diverse OPO changes that have altered how legacy players dealers, held 32 unique investor meetings with 13 serve institutional clients,along with a deeper diverse dealers,and hosted a D&I dealer annual event. understanding of our own social purpose and public OPO P ' WdMJ Oro goo 4 k •� 1 _Wit Oro _'Wit Additionally, we work with diverse vendors as part beyond FHLBanks. Our programs include, for PU of our supplier programs. Partnering with diverse example, support to obtain industry certifications Ai suppliers helps us build and expand our business, valuable in pursuing new opportunities, partnerships serve our members, and positively impact the with advocacy organizations to broaden our network Ai health,vitality, and growth of the communities of diverse vendors, and creation of dedicated Ps where we live, work, and do business. In 2022,we procurement portals to provide diverse vendors with spent $89 million with vendors who are women, access to compete for contracts. PU minority, disabled-owned, and non-diverse vendors pa diverse spend.23These engagements included The FHLBanks recently published our first FHLBank businesses with underrepresented racial and ethnic System-wide D&I report: Opening Doors, Changing °�As demographics,women, and people with disabilities. Lives - Diversity, Equity and Inclusion at FHLBanks. These stories demonstrate the breadth and depth We believe our partnerships with diverse vendors of our commitment. °o can have a significant ripple effect throughout local economies.24Through training programs and other resources, diverse suppliers can grow their business KM increasing diversity within financial services •ustry (FHLBank Des Moines) M� SIM Oft WATCH �r • • O► ow Diversify DSM,founded by the Federal Home Loan Bank Des Moines in collaboration with the Greater Des Moines Partnership,is a cohort of small-and mid-sized Central Iowa-based financial and insurance service companies committed to increasing the diverse and female representation within our industry. I� I� I� I� 31 STRONGRISK MANAGEMENTAND ■ r Given the size, complexity, and integral role of the FHLBanks to the U.S. financial system,we are organized and governed in a way that prudently manages risk and effectively fulfills our mission as a cornerstone of the housing market. Leadership by our Boards of Directors Each FHLBank is governed by its own board of directors of approximately 15-20 individuals,with directors from member institutions comprising approximately 60% of each board. Our member directors are drawn from across our membership and include leaders of banks,credit unions, insurance companies, and CDFIs. Our independent directors bring expertise in areas including cybersecurity, accounting and auditing,financial management, risk management, affordable housing, and law. Boards include independent directors who are specifically elected so that the FHLBanks have directors with expertise in community interests and community priorities. Each board is responsible for oversight of strategy and direction of their respective FHLBank and directing actions through its respective committees. Each board also evaluates the FHLBank's performance against its goals. Of the various committee types, each FHLBank board has an audit committee,which oversees financial reporting and audit; a risk committee,which tracks and evaluates risk management practices and performance; and a human resources or compensation committee, which evaluates the compensation and benefits packages for executives.This helps create alignment with the priorities of the FHLBank stakeholders. These committees and others tap into the expertise and knowledge of individual directors to provide guidance to board and management teams. Each board is advised by its district's Affordable Housing Advisory Council (AHAC), made up of nonprofit and community leaders who advocate for affordable housing and local economic development.The AHAC provides direction and recommendations to its respective board on the priority development needs of its communities to shape grants and credit programs. Leadership across the FHLBanks Though we take great pride in our decentralized and independent management structure,the 11 FHLBank Presidents, members of their executivd management, and teams across the FHLBanks and the Office of Finance are in regular communication,as we all have a responsibility as an FHLBank System to fulfill our common mission. Putting the right teams in place is fundamental to our internal risk management practices.These teams are overseen by management committees made up of senior executives responsible for governance,strategic planning, and policy making, including on operational,technology,and market risks.The FHLBanks follow the Three Lines Model of risk management.25 Managers of each business unit are empowered to act as a first line of defense in owning and managing risks.Clear expectations are set through policies-including various risk management,code of ethics,whistleblower,anti-fraud,and Bank Secrecy Act policies-to guide employees to identify, report, and mitigate risk. For the second line,our risk teams proactively identify and monitor risk, including articulating clear policies on risk management. For the third line,the FHLBanks employ internal audit departments, providing assurance that risk management practices are appropriate and functioning as intended. Effective collaboration and coordination across the three lines provide for an effective overall risk management program. 32 Leadership through Regulatory Oversight In addition to our internal risk management and governance practices, independent regulatory oversight by the FHFA is recognized as crucial by key stakeholders including our debt investors, rating agencies, FHLBank members,and their regulators.We are subject to federal mission and safety and soundness regulation by the FHFA, and the FHFA conducts annual formal examinations of each FHLBank and the Office of Finance,as well as ongoing oversight with each FHLBank's and Office of Finance's management team. Finally,each FHLBank is registered with the U.S.Securities and Exchange Commission (SEC) and publishes periodic reports that provide the public with transparency into each FHLBank's operations. Each FHLBank is required to file its quarterly and annual reports with the SEC,and disclose major events,such as capital an, board,and aw changes. Ech FHLBank's nancial statements internal rols re subject independent audit,lwhich prov desa high level of t'an parenc y and accountability nttoteacha to FHLBank's %ft operations and financial results. ,r r Pon on "h. ��... t`#• rr- ou - on on on ram, PIN MUon I i splft 33 it 1► ~ / yAD= _ A` 1 / �t MUM CORPORATE SOCIAL = ! RESPONSIBILITY HIGHLIGHTS AT FEDERAL HOME LOAN BANKS . ATLANTA go Federal Home Loan Bank of Atlanta (FHLBank Atlanta) Beyond Tifton,we have helped more than 33,000 is dedicated to fostering long-term generational wealth households improve their financial literacy through 11110 and enhancing financial literacy within the communities counseling incorporated into our down payment PW it serves. assistance program. 00 Partnerships with organizations to bolster heirs' property prevention and resolution efforts Heirs' property is a significant challenge for marginalized 111110 and historically disadvantaged communities within the 1110 FHLBank Atlanta region. Heirs' property occurs when two, a property owner dies without a will that designates a 48 successor owner or when property is left to multiple beneficiaries, resulting in a fractured title that is as unmarketable. If left unresolved,this"tangled"title can rg limit the ability to sell or improve the property,creating a significant barrier to generational wealth accumulation through home equity appreciation and devaluing surrounding areas if the property is leftto deteriorate. In 2021,we convened a forum of experts, philanthropic \� organizations, and financial institutions to explore innovative solutions to the challenge of heirs' property. We established our Heirs' Property Prevention and f Resolution Grant Initiative to tackle this issue. In 2022,we awarded $1 million in grant funding to 24 organizations that participated in the forum. Our next step will be to assess the results from these initiatives to better target resources to the most effective solutions. Homebuyer education through the City of Tifton Kick-off event for Tifton Financial Literacy I� Financial Literacy Initiative Initiative on October6,2022. Financial literacy,such as understanding the importance of saving forthe long term, can help residents in our communities understand how to become homeowners. FHLBank Atlanta leveraged its CASE = organizations - I financial literacy platform and partnered with the city • • •n Financial Literacy of Tifton, GA to support the Tifton Financial Literacy Initiative.This initiative will provide financial literacy education to residents of Tifton overthe course of three With an eye toward leveragingthe FHLBank Atlanta years,with multiple classes for employees,seniors, branded financial and property literacy platform, students, and future homebuyers.The Initiative will also we reached out to the city of Tifton,GA to improve further the work of Launch Tifton-the city's plan to financial outcomes for residents.Member financial promote housing options for residents. institutions and national and local community stakeholders collaborated to create a lunch event CASE STUDY: Serving homeowners through on October 6,2022,designed to raise awareness and ••- Preventionrty • Resolution support forthe Tifton Financial Literacy Initiative. Initiative An advisory group was formed and a curriculum was meticulously envisioned for each segment of 00 At FHLBank Atlanta,we co-hosted the Heirs' Property the population.The courses will be readily available Prevention and Resolution Funders' Forum in to citizens,employers,government,and support December2021.At this virtual and in-person event,84 organizations over a three-year period.As a result organizations from 22 states presented pilot initiatives of this initiative,residents of Tifton will have the I designed to prevent or resolve heirs'property opportunity to achieve financial and personal success challenges to 40 different potential funders,including that might otherwise have been unattainable. Monthly member banks,local and national trade groups,and classes are planned throughout 2023. philanthropic organizations. i 35 1 As a catalyst for positive change,the Federal Home Loan The program has supported a diverse range of Bank of Boston is committed to promoting economic businesses including, among other businesses, development and homeownership throughout the six restaurants,dental offices, and daycare centers. New England states in its district. To address the evolving needs of members and communities,we temporarily reshaped JNE during the Enabling job creation through Jobs for New England COVID-19 pandemic to meet working capital needs of Through our Jobs for New England (JNE) program, small businesses and nonprofits,as well as provide we partnerwith our members to help create and recovery grants for pandemic-related expenses. preservejobs,stimulate the economy,and expand small businesses— particularly those owned by women, In 2022,we disbursed $3 million in interest-rate minorities,or veterans.JNE provides members with subsidies and $17 million in advances through JNE, 0% interest advances to fund low-cost loans to small which helped to create and retain more than 870 businesses. Demand for JNE has been high since the jobs.26Since the program's inception in 2016,we have program's inception in 2016. Funds are often reserved disbursed $29 million in subsidies,and $305 million by members within minutes of the application in advances, creating and preserving nearly 11,00027 launching, highlighting overall need forthe program. jobs, highlighting the impact of this program. Through our Equity Builder Program (EBP),we partner with our members to help low-income borrowers who have struggled with escalating housing costs in New England overcome this challenge by providing grants for down payments,closing costs, and home rehabilitation, in addition to new homeowner education and counseling. In 2022,we disbursed $3 million through EBP to assist 144 borrowers achieve homeownership. Building on the success of EBP,we will be launching Lift Up _ Homeownership Program in 2023 to provide down payment and closing cost assistance grants to people 17 of color purchasing their first home who earn less than 120%of the area median income.This new pilot program aims to help close the homeownership gap for people of color. Maine Molecular Quality Control facility funded through Jobs forCASE STUDY: Supporting •• • -• - New England program. Western Massachusetts CASE STUDY: Supporting the growthof Greylock Federal Credit Union used$220,000 Maine Molecular Quality Controls, in Equity Builder Program funds to assist 10 homebuyers. Maine Molecular Quality Controls,Inc.secured The down payment is usually the biggest JNE funds through the Saco&Biddeford Savings obstacle for manyfirst-time buyers who are seeking Bank to add 37,000 square footage for offices,labs, homeownership so being able to offerthis grant specialized manufacturing suites,conference rooms, money through the Equity Builder Program is and a distribution center,which enabled them to very helpful. grow to about 50 employees. Mortgage Loan officer _ Greylock Federal Credit Union 36 CHICAGO The Federal Home Loan Bank of Chicago (FHLBank Providing funding for affordable housing and economic Chicago) plays a vital role in enabling access to development through our Community First®Fund affordable housing through the products and services Our Community First®Fund (CFF) is a revolving loan provided to members and through a successful joint fund that provides unsecured loans to community program with fellow FHLBanks. organizations, including non-depository CDFIs,to support their affordable housing and economic Competitive mortgage financing through the development lending throughout Illinois and Wisconsin. Mortgage Partnership Finance°(MPF®) Program28 CFF provides reduced-rate, long-term, unsecured As the founder of the MPF Program,we serve as financing to partner organizations that finance or the administrator and master servicer, enabling the invest in affordable housing,commercial real estate, members of FHLBanks to provide competitive mortgage community facilities,or small businesses.The first terms to borrowers and local communities. In 2022,the fund of its kind in the FHLBank System, CFF currently FHLBanks purchased $8.1 billion in mortgages under supports eight CDFIs working in our district. Since the MPF Program and the MPF Program had a balance of inception in 2014 we have deployed $46.5 million that $65.6 billion in residential mortgage loans outstanding our CFF partners have used to support the creation or across all MPF products.Through the 25-year history retention of 4,971 jobs and 9,510 affordable housing of the MPF program,the FHLBanks have purchased units. In 2022, 106 FHLBank Chicago members engaged $340 billion in mortgages to help more than 3 million with CFF participants via lending relationships, borrowers finance their homes. participation on leadership boards,and provision of Our MPF products address changing marketing banking services. conditions, providing our members with an alternative secondary mortgage market option to enable mortgage Affordable originations for their borrowers. Unique among AdvancingCASE STUDY: secondary mortgage market options,the MPF Program • •' • ':•' ns pays members for retaining part of the credit risk of their mortgages,directly rewarding them for providing high-quality loans.To date,the MPF Program has paid Community Investment Corporation (CIC)is a approximately$1 billion in credit enhancement income leading source of financingforthe acquisition, to more than 1,500 members. rehabilitation,and preservation of affordable rental housing in Chicago's neighborhoods and � Our services are particularly important in low-income suburban communities. FHLBank Chica o rovided areas and for smaller members across FHLBanks.Across g p all MPF products in 2022,79%of the sellers were banks a$10.5 million unsecured loan to CIC through � and credit unions with less than $1.3 billion in assets. the Community First Fund."With the help of the In addition, in 2022,36%of the mortgages purchased FHLBank's Community First Fund,we are financing for investment by FHLBanks participating in the MPF small,multifamily buildings that help generate oe Program orsecuritized through MPF Government MBS generational and local wealth,"said Stacie Young, were made to low-and very low-income borrowers or President and CEO at CIC."At CIC,our loans support 00 made to borrowers in a low-income area. small development firms,half of which are led by BIPOC community members,and through this work we are able to contribute to both housing and VOICEOF - Enabling economic opportunities in the communities we I� members to offer competitive • •,•- serve" financing to borrowers 64 The MPF Program keeps us competitive in the markets we serve through their unique mortgage products.The fact that we can retain servicing is .�C� an important feature that allows us to keep that small town bank'feel as we continue to develop —�-- �� customer relationships. ,.ram [,i, Vice President Jay and LoJune Vancy,Owners ofLJ Promise Realty Western Nebraska Bank Management LLC,and beneficiaries of our Community First° Fund with the help of CIC. 37 CINCINNATI Providing unwavering support to communities in Assistance to veterans and military personnel through times of crisis and improving housing affordability for the Welcome Home Program borrowers across the three states in our district are top Despite bravely serving our country,veterans,surviving priorities forthe Federal Home Loan Bank of Cincinnati spouses of military personnel,and active-duty (FHLBank Cincinnati). homebuyers often face barriers to homeownership, Grants to rebuild homes through the Disaster including funding down payments and closingcosts. Reconstruction Program At FHLBank Cincinnati,we developed ourflagship Established in 2012 following devastating tornadoes Welcome Home Program to provide grants of$7,500 to in eastern Ohio,the Disaster Reconstruction Program ourveterans,and$5,000 for other eligible homebuyers,to (DRP)supports homeowners and eligible homebuyers help eliminate common barriers to homeownership.For whose homes have been destroyed,damaged,or made 2023,we are proud to announce that we are doublingthe temporarily uninhabitable by natural disasters.The DRP grant amounts for both groups to$15,000 and$10,000, provides grants to rebuild or repair single-family homes, respectively. orto assist displaced renters lookingto purchase or construct a single-family home. In 2022,we disbursed more than$2.6 million in Welcome Home grants through 145 members to help 559 individuals In 2022,we provided more than$630,000 to support and families purchase homes.Since the program's communities affected by natural disasters,benefitting 40 households.The program's impact in crises runs inception in 1998,we have provided$182.6 million to help deep;since 2012,the DRP has provided grants to 535 more than 37,000 families become homeowners. households and awarded more than$6.8 million to assist in recovery from natural disasters. I■■ ■■■ ■■ I ® A - r Fi iLB FHLB LINCINM ��1 rINCINNgiI n _ F In-progress recovery efforts for homes via assistance from the EHL�B . J = ,FNHILB �B Disaster Reconstruction Program. CASE STUDY: Supporting flood recovery effortsCounty FHLBank Cincinnati employees visit Waverly, TN to help rebuild FHLBank Cincinnati awarded Farmers State Bank homes. and Partnership Housing Inc.$64,000 to benefit four J families affected by flooding in December2020 and J u ly 2022. CASE STUDY: Supporting flood recovery I start with one house at a time and try to efforts in Waverly, TN complete the puzzle.And [Disaster Reconstruction Program]funds are a large piece of the puzzle. In 2021,Appalachia Service Project(ASP) collaborated with the Bank of Tennessee to access our Disaster Reconstruction Program funds to Executive Director support the repair of homes destroyed by flooding in Partnership Housing Inc. Waverly,TN. J 38 J DALLAS The Federal Home Loan Bank of Dallas is committed to revitalizing communities reeling from natural disasters and empoweringsmall businessesto grow and createjobs, which provides benefits for the entire community and across o u r five-state districtofArkansas, Louisiana,New r� Mexico, Mississippi,and Texas. Grants to restore homes via Disaster Rebuilding Assistance Through our Disaster Rebuilding Assistance (DRA) Betty Kennedy,recipient of DRA funding to replace damaged program,we help homeowners who have suffered roof in New Orleans,LA. sp housing loss because of natural disasters.The program provides our members with funding to quickly provide Helping local businesses thrive through Small communities and homeowners with the funds needed Business Boost to carry out the repair, rehabilitation,or reconstruction Small businesses frequently grapple with the of their homes.The funds are designed to support low- challenge of getting the funding they need to income homeowners who often do not have home or grow,often due to a lack of equity or collateral.We flood insurance coverage. established the Small Business Boost(SBB) program to bridge the gap between what members can finance In 2022, 12 federally declared disasters— including traditionally, and the loan request made by an eligible hurricanes,severe storms,and wildfires—were eligible small business. SBB funds may be used for starting for DRA funding across our district.We provided or expanding a small business, including building approximately$1 million in funding to support the repair purchase, land acquisition,construction,equipment, and rehabilitation of 109 housing units.The average working capital, and other related uses. In 2022,we amount awarded per household was approximately disbursed $2.7 million in funds to assist42 businesses $9,170, money used to help the most vulnerable spring and create or retain 174jobs. back at the most crucial times. CASE STUDY: Replacing storm-damaged CASE STUDY: Supporting small businesses roof for a Gulf Coast resident to create jobs Betty Kennedy,a New Orleans-area homeowner, Tommy's Express Car Wash in San Antonio,TX, received nearly$8,800 in 2022 Disaster Rebuilding received an SBB loan for$100,000 through our C� Assistance(DRA)funding that was awarded by our member First National Bank Texas.The SBB loan bank through Fidelity Bank.The funds replaced the issued to Jeff Ottmers,general manager and roof that was damaged by several storms that have managing partner,created eight newjobs for the hit the Gulf Coast. local economy. «It is critical to us to have the staying power that the [The roof repair]would not have been possible Small Business Boost offers so we can get through without the DRA funds.The roof was my most that initial startup phase.[SBB has]given us the important need. It allowed me to stop worrying ability to not have to either pull out of retirement about leaks.» accounts or look for alternative loan sources.I f do Betty Kennedy Jeff Ottmers is Homeowner Tommy's Express Car Wash (San Antonio) is (New Orleans) Click here to view this SBB story 39 DES MOINES The Federal Home Loan Bank of Des Moines(FHLBank financial institutions.Our members also vary in size: Des Moines)district is home to approximately30%of 17%with assets less than$100 million,48%with assets the U.S.Native Population. FHLBank Des Moines has a between$100 million and$500 million,and 35%with long and proud commitmentto prioritizing initiatives for assets greater than$500 million. members to advance community development,access affordable housing,and meetthe unique needs of Native Our broad membership base enables us to supportthe communities. needs of communities across urban and rural areas, tribal lands,Alaska Native villages,and the Department Reliable funding to our broad membership base of Hawaiian Homelands.Through our members,we have Our extensive membership base comprises commercial implemented several initiatives that support affordable _ banks,savings institutions,credit unions,insurance housing and economic development across these companies,and CDFIs,which enables us to meet the communities,including Community Investment Advances _ dynamic needs of our communities.As of December 31, that provide access to long-term fixed-rate funding for 2022,approximately 65%of our members were community economic development and housing finance. millionVOICE OF MEMBERS: Support for small members such as the People's Bank of Seneca — a $360 bank, • m1i «What makes[People's Bank of Seneca]a little bit unique is thatwe are majority owned by the Eastern Shawnee 00 Indian Tribe of Oklahoma[...].The Federal Home Loan Bank of Des Moines,who we have worked with,is a true partner. WO They have been instrumental in our bank's survival,instrumental in our bank's growth,and instrumental in what we are now doing,which is thriving.» President and CEO People's Bank of Seneca 00 Financing for affordable housing for Native communities 00 We established the Native American Homeownership • access to affordable Initiative(NAHI)to provide eligible Native households up housingfor - People to$15,000 for down payment and closing cost assistance 00 to grow homeownership across the underserved Native 00 population.Since NAHI's inception,we have extended We have been a crucial partner to the Sisseton 00 $8.3 million in down payment assistance to more than Wahpeton Housing Authority,which has a mission to 900 households. Between 2019-2021, Native projects have secure affordable housing for tribal members. 00 been awarded,on average,26%of total Affordable Housing 00 Program funds to help finance affordable rental and 4 CSince 2010,FHLBank Des Moines has assisted 00 owner-occupied housing. us in rehabilitating 99 homes and securing down aw Building on the strength of Native communities,the payment assistance for 9 families,in addition to FHLBank Des Moines'Native Outreach Directory facilitates supporting the rehabilitation and new construction partnerships between members and Native CDFIs and of 36 rental units[...].Our partnership with FHLBank Tribally Designated Housing Entities.An interactive tool, Des Moines speaks to a broader shift in the home- the Directory helps to unlock financial opportunities that buying process for tribal members who,20 to 30 support affordable housing and community economic years ago,were often rejected by banks for loans. development on Native lands and for Native People.We complement these efforts by incorporating the voice Administrator of Native People in our decision-making with Native Sisseton Wahpeton Housing Authority representation on ourAffordable Housing Advisory J Council and board of directors. J 40 PIS Expanding our reach to address housing and small our relationships by hosting 13 events for members, business needs in Indiana and Michigan is imperative to community partners, and our employees in the the Federal Home Loan Bank of Indianapolis. Detroit area. Deep local ties through our Detroit Hub and the Funding to businesses with revenue less than$1 4B Community Investment Program million through Elevate grants so The Detroit Hub has strengthened our ties with local We established Elevate grants to support businesses q9 community groups in the city and Michigan at large across Indiana and Michigan with less than$1 million in via partnerships and awareness-raising activities. annual revenue.The grants are extended to recipients Through the Hub,we have made tremendous strides via our members and can be used towards business in increasing the uptake of funds across Detroit-based needs that focus on creatingjob opportunities or members. In 2022,we awarded$25 million in low-cost labor improvement,such as hiring new employees or Community Investment Program advances to our workforce training. In 2022,we awarded more than Detroit-based members for community and economic $500,000 in Elevate grants to 27 small businesses development projects,$1.5 million in affordable housing through 15 of our memberfinancial institutions. During projects to support 126 housing units via our Affordable 2018-2022,we provided $235,000 in Elevate grants to 11 Housing Program,and an additional$300,000 to aid 41 small businesses in Detroit through five local financial homeowners with home purchase orvital repairs.To institutions. further boost awareness of funds,we also deepened CASE STUDY: Affordable housing for low- income and homeless We awarded a$500,000 rant to Catholic Charities of g I Southeast Michigan to convert St. Matthew School re into an affordable housing complex called the ^� Residences at St. Matthew.Of the 46 units,25 will be e a'11 designated permanent supportive housing and set go aside forthe formerly homeless,while the rest will oe be reserved for low-income families at rates ranging from 30-60%of the area's median income. St.Matthew School,beneficiary of the Affordable Housing Program. CASE STUDY: Supporting small businesses via Elevate grants in Detroit 00 on Brewery Faisan in Detroit was able to accelerate growth by switching from manual to automated canning processes, made possible by the Elevate grants. «Our intent for purchasing a canning machine is to provide increased capacity and to automate the manysteps currently required for manual filling.» ou Paul Szlaga 00 Brewery Foison (Detroit) is Io 41 NEW YORK Through our strong relationships with members and We support local organizations in Puerto Rico and the U.S. community partners,the Federal Home Loan Bank of New Virgin Islands in recovering from natural disasters. York(FHLBank New York)is positioned to help address In 2022,we provided$650,000 in grants to front-line relief pressing issues across our district from providing funding organizations in response to Hurricane Fiona. support for homeless housing opportunities to assisting distressed small businesses recover from natural disasters. Using the Affordable Housing Program to help reduce Homelessness across our district Disaster recovery through the Small Business We are committed to leveraging our programs and funding, Recovery Grant Program in partnership with our members and local organizations, In response to Hurricanes Irma and Maria in 2017,we to support initiatives that address homelessness in launched the Small Business Recovery Grant Program our district.We prioritize projects aimed at supporting (SBRG) in Puerto Rico and the U.S.Virgin Islands to assist people experiencing homelessness,and we have evolved in the wide-ranging recovery effort. Duringthe COVID-19 oursupport for organizations establishing housing for pandemic,we redeployed the funding to assist small impacted individuals.Since 2019,we have provided more businesses across our district respond to pandemic-related than$64 million in AHP grants to support 58 initiatives declines in cash flow. In 2020-2021,working through our that increase housing accessibility for people experiencing members,we promptly provided$14 million in grants homelessness. to more than 1,180 small businesses and 850 nonprofit - organizations. CASE STUDY: Our •ng history of •p • Blockthe Church Avenue Merchant Association (CAM BA) to help address homelessness in New York We at FHLBank New York have supported CAMBA, a leading nonprofit providing permanent and supportive housing for people experiencing homelessness across New York City,for 15 years. We have provided them with more than$8 million in Affordable Housing Program grants,which have Extensive ceiling damage due to roof water leakages at Mrs. Carmen helped create or maintain 900 affordable housing Burgos'home in Santa Isabel,Puerto Rico(pictured before repairs). units in the city.At the onset of the COVID-19 pandemic,we provided CAMBA with a$75,000 grant to restock its food pantry.Our long history of support CASE STUDY: Supporting disaster was recognized at the annual CAMBA Night Out recovery •rts following Hurricane FionaAwards Gala in 2022. in Santa Isabel, .. F C We could never do these projects without the About$8,700 was provided to Mrs.Carmen Burgos, gap funding from the Federal Home Loan Bank resident of Santa Isabel,PR,to finance home repairs following damages caused by Hurricane [of New York].}� Fiona.The project was completed in December President and CEO 2022,and involved repairing walls and ceilings, CAMBA, Inc -- fixing roof water leakages,and installing a new Click here to view this CAM BA story refrigerator. J At the Federal Home Loan Bank of Pittsburgh (FHLBank fund to support 29 women-and minority-owned small Pittsburgh),we are committed to designing and businesses,creating and maintaining more than 150jobs. � innovating programs that meet the specific needs of our members and the communities they serve.Two Homelessness intervention through Home4Good examples of the voluntary programs we offer are Through our Home4Good program,and in partnership focused on addressing the specific needs of small with the Delaware State Housing Agency,Pennsylvania businesses and those who are experiencing,or are at Housing Finance Agency,and the West Virginia Housing risk of experiencing, homelessness. Development Fund,we provide grants to fund projects, programs,and activities that help those who are Funding for small businesses with Banking experiencing homelessness or are at risk of becoming On Business homeless.With the support of FHLBank members, Small businesses are an important driver in economic Continuums of Care and service organizations serving development.According to the Small Business those who are experiencing homelessness or are at Administration,small businesses have generated 12.9 risk of being homeless apply for Home4Good grants. million jobs over the past 25 years.This means that In 2022,we contributed $1.5 million to Home4Good. small businesses are responsible for creating two Housing finance agencies contributed an additional out of every three newjobs.To help support small $2.1 million,and our combined contributions business creation and expansion,we created Banking supported 56 homeless services projects. On Business(BOB),which provides crucial secondary funding in conjunction with our member's first loan to d, help qualified small businesses that would otherwise fail to meet the members' underwriting standards.While VOICEOF • Home4Good BOB has supported community development for more than 20 years,we have recently advanced our efforts r� to establish the Banking On Business Inclusion and Equity fund (BOBIE). BOBIE is a special purpose credit Home4Good has been vital,not only in bolstering program that allows us to focus a portion of BOB funds the homeless service system in providing resources on minority-and women-owned small businesses and is that don't otherwise fit neatly into current funding intended to meet the needs of underrepresented small parameters,but also in supporting new and businesses by offering more flexible funding terms than innovative endeavors across our Continuum of Care. are otherwise available under BOB. Home4Good was particularly vital at the height In 2022,we awarded $4.1 million through our BOB of COVID in a frightening time of historic need; program to support 30 small businesses,Creating this program allowed providers to move quickly and maintaining more than 300jobs collectively.We and effectively to assist and stabilize persons awarded an additional$2.4 million through our BOBIE experiencing or on the verge of homelessness. Home4Good has been important in helping address these community challenges.This has included VOICEOF : Bankingproviding furniture and homemaking materials to persons first entering housing after months oryears on the street. It has also funded otherwork including «FHLBank members have access to programs new housing for homeless youth,resolving unpaid that matterto our communities.Their Banking utility bills that can result in people in shelters or On Business and Home4Good programs are two on the street,and staffing costs aiding broader examples of annual opportunities that benefit supportive services., regional small businesses and address housing needs, respectively. Senior Vice President CEO Community First Fund West Virginia Coalition to End Homelessness AD r ► FRANCISCO Delivering affordable housing,homeownership,and projects from creatingjobs and boosting small businesses economic development programs and resources that to delivering vital social services to unhoused populations, change lives and help communities thrive,in partnership demonstrating the many ways local economic development with our members,is core to the Federal Home Loan Bank makes a difference.To grow our positive impact,in 2023 we of San Francisco(FHLBank San Francisco) mission. are making$4 million available forthe program,more than double the previous year. _ Growing local economies Through our Access to Housing and Economic Assistance for Pathways for families to become first-time homeowners Development(AHEAD) program,we provide our members Our Workforce Initiative Subsidyfor Homeownership(WISH) and their community partners with grants to create a Program offers grants to help families overcome barriers to brighter,more equitable future for underserved people and homeownership.Since 2000,we have funded nearly$142 communities.Since 2004,we have awarded more than$20 million in down payment matching grants,helping more million in AHEAD grants to more than 700 innovative and than 9,500 families achieve the dream of owning a home. targeted economic development projects across Arizona, We are proud of our continuing legacy of providing California,and Nevada. homeownership solutions into 2023 by making$12.5 million In 2022,we awarded $1.5 million in AHEAD grants to 55 available for the WISH Program,and of making an additional local organizations,supporting a diverse spectrum of progralm to meet middle-income le for needs of middle-income income grant households in ourdistrict. e . y Chef Maria Parra Cono preparing sweet pumpkin tamales in Phoenix Indian School Visitor Center's commercial kitchen. Doris Ealy in newly purchased one-bedroom condominium. CASE STUDY: Native American Connections provides space for entrepreneurs CASE STUDY: Creating pathways to sustainable homeownership The Phoenix Indian School Visitor Center project received a$20,000 AHEAD grant sponsored by At 56, Doris Ealy needed a permanent solution to Western Alliance Bank to fund the build-out of her uncertain housing situation.After completing their commercial kitchen.Chef Maria Parra Cano is a homebuyer education program,she received a using access to the kitchen to grow her company, $22,000 WISH grant through FHLBank San Francisco Sana Sana Foods,where she cooks with ancient member Luther Burbank Savings and closed on her ingredients and educates her community on the one-bedroom condominium in May 2022. relationship between food and health outcomes. 44Our bank has been particularly supportive of It feels good to'have a key to turn and be at home. Native American Connections because of their deep It gives me peace of mind,and I love it._ - connection to,and support for,our community. Chief Credit Officer Doris Ealy Western Alliance Bonk New homeowner 44 40 TOPEKA go The Federal Home Loan Bank of Topeka (FHLBank Topeka) each fall. Due to increasing member demand,we've added 06 is unique in the large percentage of its membership that funds to the program each year.What started in 2018 as is comprised of financial institutions with assets less than two$500 awards perstate grew to 41 projects in 2022. 96 $1.3 billion. FHLBank Topeka focuses on supporting these Members are asked through a short surveywhat they'd smaller members to operate as a crucial source of funding do with$500 in their community.Projects funded include for their communities. park improvements,town revitalization,support for local Reliable liquidity for our broad membership base schools,housing assistance,and more. We take immense pride in the breadth of members we We also supported 16 minority-or women-owned I0 serve,with smaller members making up approximately institutions,of which 13 were owned by Native American or oe 90%of our overall membership base.Our smaller Alaskan Native American,Asian or Pacific Islander American, members leverage us as a crucial partner for funding.In Black orAfrican American,or Hispanic owners. 00 2022,63%of oursmaker members utilized advances and on had$7.5 billion of advances outstanding as of the end of Affordable housing for underserved Native communities the year. We support underserved communities across our district, on including Native American communities,via our grants and In addition,we have one of the highest concentrations of funding to small community financial institutions.We are rural banks,as well as farm and agricultural banks in the committed to doing more.We are excited to launch the FHLBank System,with 330 and 126 banks represented, Native American Housing Initiatives Grants Program in 2023, respectively.Rural and agricultural banks partnerwith us designed to focus specifically on building housing capacity to serve their local communities,help small family farms in Native communities,which are often overlooked by prosper,and provide vital services for the economy.To traditional lenders.By providing grassroots support and at recognize members'impact in their local communities,we least$1 million in funding for discretionary usage related to instituted the annual Community Leader Award in 2005 to housing,we are hoping to make a transformative impact on recognize outstanding vision and leadership by a member these communities. institution. Members with just one branch up to members with locations across the region have been recognized. View a collection of videos highlighting our partnerships - with our members at Community Leader Award (CLA) Winners-YouTube. Through our#500forGood program,we've supported the causes our members care about with$500 microgrants SupportingCASE STUDY: our •- to drive community impact Ws a community development financial institution, we are very grateful for our wholesale banking CASE STUDY: Grant allows nonprofitto -•• relationship with the FHLBank of Topeka.Without opportunities f•r Indigenous them,we would not be able to leverage our balance sheet and provide the impact that we do. » Oklahoma Native Assets Coalition (ONAC),Inc., President received a$750,000 Affordable Housing Program grant Mercy Community Capital through FHLBank Topeka member Gateway First Bank «Without FHLBank of Topeka,we would be without in Jenks,Oklahoma,to offer down payment assistance for Tribal households in Oklahoma,Colorado, Kansas, amain source of liquidity,and would miss out on the Nebraska,and across the country.The grant is helping opportunity to provide competitive home loans in our 125 families with up to$5,000 in closing costs and market.» down payment.This investment helps Native American recipients build wealth for themselves Senior Vice President and future generations. The Farmers State Bank 45 l -44 1 _ sue;=•= ----- - -— mum e� ■■ ■■ ■■ ■■ --- ■■ ■■ ■■ ■erg END NOTES AND RESOURCES NOTESPIS END ps 'Combined Financial Report,Federal Home Loan Banks,for the "Members with assets under$10 billion estimated from bank Year ended December 3l,2022 and credit union members with disclosed balance sheet asset 2 sizes from S&P's SNL Banking database,2022 Combined Financial Reports,Federal Home Loan Banks,forthe Years ended 2018,2019,2020,2021,2022 "Use of advances as a share of assets estimated from bank and credit union members with disclosed balance sheet asset sizes 864%hnusing-related collateral calculated from the 2018-2022 average of Single-family mortgage loans,Multifamily mortgage from S&P's SNL Banking database,2018-2022 loans,and U.S.agency MBS and CMOs-as part of the housing 18Source:Office of Finance related collateral as reported in Federal Home Loan Banks Combined Financial Reports,for the Years Ended 2018,2019, 19Combined Financial Report,Federal Home Loan Banks,Year 2020,2021,2022 ended December3l,2022 °For purposes of the AHP calculation,income subject to 2040%increase in member advances(amountingto$258billion) assessment is defined as net income before AHP assessments, is based on the difference in par value of Advances outstanding plus interest expense related to mandatorily redeemable capital at the end of4Q 2008 and 2Q 2007.The parvalues are obtained I� stock from the Combined Financial Reports,Federal Home Loan Banks 5CICA programs include Community Investment Program,Rural 2125%increase in outstanding member advances(amounting Development Funding Program,Urban Development Funding to$158 billion)is calculated from the difference in parvalue of Program,and targeted community lending programs Advances Outstanding at the end of 4Q 2019 and 1Q 2020.The parvalues are obtained from the Combined Financial Reports, 'Combined Financial Reports,Federal Home Loan Banks,for the Federal Home Loan Banks ram, Years ended 2018,2019,2020,2021,2022 22Combined Financial Report,Federal Home Loan Banks,Year 'The 2022 Community Financial Institutions total asset cap was ended December3l,2022 $1,323,000,000,based on the annual percentage increase in the Consumer Price Index for all urban consumers,as published by 23 Non diverse vendors with diverse spend means the dollar the Department of Labor amount paid by us to a vendorthat is not a minority-,women-, or disabled-owned business but is paid to a partner,member,or 'Government-sponsored wholesale funding and the industrial other equity ownerwho is a minority,woman,oran individual organization of bank lending,University of Wisconsin,2020, with a disability Daying Zhang,Community Banking Research Conference 24 Why You Need aSupplier-Diversity Program,Harvard Business e Combined Financial Report,Federal Home Loan Banks,2022 Review,2020 10 Combined Financial Reports,Federal Home Loan Banks,for 25The IIA's Three Lines Model,The Institute of Internal Auditors the Years ended 2018,2019,2020,2021,2022 -. ze Number of jobs created as reported by member financial 11 How much could down payment assistance help close institutions homeownership rate gaps for Black and Hispanic households, Joint Centerfor Housing Studies of Harvard University,2023 21Jobs created and preserved by Jobs for New England Programs since inception is captured as reported by Federal Home Loan 12Combined Financial Report,Federal Home Loan Banks,Year Bank of Boston Members at time of application r ended December3l,2022 28"Mortgage Partnership Finance®","MPF®",and"Community 13 Numbers are self-reported by members who received funding First"'are federally registered trademarks of the Federal Home rthrough CICAAdvances Loan Bank of Chicago 14Press release:FHLBanks announced$1 million forcommunities impacted by Hurricane Harvey(August 31,2017)and$1 million relief for communities impacted by Hurricane Irma(September 27,2017) ® 15 Federal Home Loan Bank System-wide advances to commercial banks and savings institution members,2020 �� 47 1 RESOURCES Federal Home Loan Banks' Combined Financial Reports: https://www.fhlb-of.com/ofweb_userWeb/pageBuilder/fhlbank-financial-data-36 Federal Home Loan Banks' Opening Doors, Changing Lives Report: https-.//fh[banks.com/OpeningDoors/ Federal Home Loan Bank-specific impact reports: • FHLBank Chicago 2022 Impact Report: https://www.fhlbc.com/impact • FHLBank Cincinnati 2022 Corporate Social Responsibility Report: https://www.fhlbcin.com/media/3374/csr22-v7.pdf FHLBank Dallas Environmental, Social and Governance Report: https://www.fhlb.com/getmedia/9cd26f43-96eb-4ac0-9dad-e109fd4abdb5/FHLBank-ESG-Report.pdf • FHLBank Indianapolis 2022 Corporate Social Responsibility Report: - https://www.fh lbi.com/webres/File/resources/CSR/FH LBa n k_I nd is na polis%20CSR.pdf • FHLBank Pittsburgh 2022 Impact Report: https://www.fh lb-pgh.co m/fi les/resou rces/2022-FH LBa n k-1 m pact-Report.pdf Federal Home Loan Banks' websites • Atlanta: https://corp.fh[bat[.com • Boston: https://www.fhlbboston.com • Chicago: https://www.fhlbc.com • Cincinnati: https://www.fh[bcin.tom • Dallas: https://www.fh[b.com • Des Moines: https://www.fhlbdm.com • Indianapolis: https://www.fhlbi.com • Newyork: https://www.fhIbny.com • Pittsburgh: https://www.fhlb-pgh.com • Topeka: https://www.fh[btopeka.com • San Francisco: https://fhlbsf.com • Office of Finance: https://www.fhlb-of.com / C tff l; LEGAL DISCLAIMER i We have prepared the information in this Report to provide a general overview of the Federal Home Loan Banks' combined corporate social responsibility activities. It is for informational purposes, is not intended to be relied on to make any investment decisions, and does not constitute an offer to sell nor the solicitation of offers to buy any securities of the Federal Home Loan Banks.This Report covers our owned businesses and does not address the performance of our vendors, dealers, contractors or members.The information in this Report is a summary and is not a complete description of all of our relevant activities. Our approaches to the inclusion of information in this Report differ in significant ways from disclosures in mandatory regulatory reporting(including those under Securities and Exchange Commission regulations or Federal Housing Finance Agency regulations). This Report has been prepared using data and methodologies that are subject to certain limitations, including techniques and standards for measuring and analyzing relevant data;judgments, estimations and assumptions; and availability of relevant data. Furthermore, data included in this Report are not necessarily prepared in accordance with generally accepted accounting principles. We did not employ any third-party firm to audit this Report. This Report speaks only as of its date and we do not undertake to update any information in this Report. No reports, documents or websites that are cited or referred to in this Report shall be deemed to form part of this Report. Certain information contained in this Report has been obtained from publicly available or other third-party sources believed to be reliable, but no representation or warranty is made by us as to the quality, completeness or accuracy of such information. Sources of third-party information referred to in this Report retain all rights with respect to such data.