Pub. 5 2014 Issue 2

www.wvbankers.org 16 West Virginia Banker • Flexible term – maturities up to one year • FHLBank rating – AA+/Aaa-rated collateral • Efficient pricing – one-time fee of 0.10 percent of the total amount secured (multiplied by number of days in term divided by 365 or 360, as applicable) • Stock investment – invest in the Bank’s capital stock, with the poten- tial to earn a dividend on your shares • Wide acceptance – can be used to secure deposits in at least 42 states, including West Virginia Helping You Manage Your Assets Applying for an FHLBank Pittsburgh LC is easy. Once established, LC’s can be conveniently accessed through the Bank’s online banking site, Bank4Banks. com. To apply, FHLBank Pittsburgh members can call their Relationship Manager at the following numbers: Vince Moye (412.841.2204), Larry Swingle (412.841.2075) or the Product Delivery Service Center (800.288.3400, option 2). We look forward to talking to you about how you can use LCs to increase your asset/liability management options. Note: The FDIC regulations regarding deposit insurance defines “public unit deposits” as accounts of a state, county, municipality or political subdivision; the regulations provide that “the term ‘political subdivision’ includes drainage, irrigation, navigation, improvement, levee, sanitary, school or power districts, and bridge or port authorities and other special districts created by state statute or com- pacts between the states. It also includes any subdivision of a public unit or any principal department of such public unit: 1. The creation of which subdivision or department has been expressly autho- rized by the laws of such public unit; 2. To which some functions of govern- ment have been delegated by such law; and 3. Which is empowered to exercise con- trol over funds for its exclusive use.” Vince Moye is a business devel- opment manager at FHLBank Pittsburgh with more than 20 years of experience in the bank- ing industry. F or financial institutions, accepting state and municipal deposits can be an affordable way to increase liquidity, restore capital investment and participate in the communities they serve. Public unit deposits (see footnote for definition) are routinely reinvested back into the commu- nity through small business and construc- tion loans, mortgages and other local lending. Relying solely on securities to col- lateralize these types of deposits, however, can limit an institution’s options when it comes to asset/liability management. West Virginia financial institutions that want more flexibility in the collateral types used to secure public unit deposits have another option available: letters of credit (LCs) from FHLBank Pittsburgh. Bank members can pledge existing high-qual- ity collateral in exchange for an LC that secures public funds. This approach allows institutions to broaden the types of collat- eral used (e.g., loans and mortgages) for public funds and can free up securities to be used for other business purposes, such as generating income. FHLBank Pittsburgh members can also get the following benefits by utilizing the Bank’s LCs: Making Good With Public Unit Deposits By Vince Moye, Business Development Manager, FHLBank Pittsburgh n