Ng supported the spirit of the OCC’s directive, but the path to compliance was unclear. 

"I didn’t know how we—little East West Bank, which had just converted from a savings and loan to a commercial banking charter—could manage this kind of mandate," he says. "I was really concerned."

 Many banks at the time were offering low down-payment mortgages, a product Ng believed was unsustainable for both homebuyers and banks. He was drawn instead to affordable housing development projects.

 "I wanted to support affordable housing, but I was too small—I couldn’t compete. I couldn't underwrite a bond and my bank's balance sheet was too small," recalls Ng.

 Determined to find a creative solution, Ng turned to the Federal Home Loan Bank of San Francisco. The result was not only a game-changing use of an under-utilized financial product but also a decades-long relationship that remains a meaningful part of both institutions' success.

Turning Letters of Credit into an Affordable Housing Finance Tool

Ng, who worked previously in advisory services at a global professional services firm, huddled with East West Bank’s general counsel. How could a $1 billion asset bank compete with much larger banks to underwrite bonds?

Ng was aware that FHLBank San Francisco shared East West Bank’s interest in supporting affordable housing and he wondered if member banks like his could leverage FHLBank San Francisco’s strong credit rating using a letter of credit to support bond issuance. He reached out and was told that FHLBank San Francisco had previously issued letters of credit in support of housing bonds, although this use was not common at the time.

Ng worked with FHLBank San Francisco to revive and expand use of this product. Housing bonds backed by the credit strength of FHLBank San Francisco are more attractive to bond investors and allow smaller member banks to compete against larger institutions in the financing of housing development.

Ng counts discovering and utilizing the program among the highlights of his career. Over the past decade, East West Bank has issued $2.9 billion in housing bonds supported by FHLBank San Francisco letters of credit — advancing critical development projects in the communities it serves.

The program has helped make Ng’s bank a leader in affordable housing. Over the past 20 years, East West Bank’s Community Lending team has funded about 100 affordable housing projects, creating more than 15,000 individual units.

Liquidity in Good Times and Bad

Having seamless access to FHLBank San Francisco liquidity has provided peace of mind year after year for East West, even as the bank has grown to its current asset size of $78 billion.

Ng can recite a half dozen examples of crises where he stood ready to use FHLBank San Francisco advances to safeguard the bank’s liquidity: The Rodney King Riots in 1992; the Northridge Earthquake in 1994; the 9/11 terrorist attacks that shutdown air travel and brought the hospitality industry to a near standstill; the 2007-2009 housing crisis and Great Recession; and the regional banking turmoil in 2023.

While East West Bank’s strong and stable deposit base has consistently weathered turbulent times, the value of FHLBank San Francisco as a liquidity backstop cannot be overstated, Ng explains.

That backstop is there both for day-to-day liquidity needs and in times of stress on the banking system. Ng points out that other liquidity sources, such as correspondent relationships with large banks, are never guaranteed. But FHLBank San Francisco is unwavering — and contractually committed to support its members.

"As a banker—or, more appropriately, as a risk manager—I always need to ensure we come out ahead whenever there are rough seas or a major financial hurricane headed our way. That’s why it’s so critical to have a partner like the Federal Home Loan Bank who always says, 'We're here for you.'"

A True Business Partner of FHLBank San Francisco

The use of FHLBank San Francisco letters of credit to help develop affordable housing marked a milestone in a relationship that has only grown stronger in the ensuing three decades.

"East West Bank's success is built on trust, purpose and shared prosperity," Ng says. "Our decades-long partnership with FHLBank San Francisco remains a vital part of that success."

East West's partnership with FHLBank San Francisco also includes participation in grant programs such as FHLBank San Francisco's Access to Housing and Economic Assistance for Development (AHEAD) and Affordable Housing Program (AHP), as well as accessing FHLBank San Francisco liquidity for day-to-day and strategic funding needs.

In 2025, East West Bank's membership played a role in Southern California's recovery from the January wildfires. Headquartered in Pasadena, East West Bank provided more than $1 million in direct relief, including support for artists, art workers, galleries, and collectors.

FHLBank San Francisco’s Wildfire Relief and Recovery program matched member donations with $1.4 million in total contributions. East West Bank leveraged $50,000 in matching funds from FHLBank San Francisco's disaster relief program to increase its support for the YMCA of Metropolitan Los Angeles and the Pasadena Community Foundation.

Ng was also mindful of the direct risks posed by the $164 billion catastrophe, given East West Bank’s $13 billion mortgage portfolio. As in past crises he prepared to tap into FHLBank San Francisco advances, if needed, to bolster his bank’s liquidity. Fortunately, very few of the bank's customers’ properties were affected, and East West Bank’s loan portfolio remained unscathed.

Time and again, East West Bank has tapped into its FHLBank San Francisco membership to support the communities it serves, mitigate risk and reinforce its robust financial stability—becoming a model for how members can fully leverage their partnership with FHLBank San Francisco.

A Collaboration-Ready Partner

When Ng reflects on his decades of partnering with FHLBank San Francisco, his advice to others is simple: Be curious. Don’t be shy about asking FHLBank San Francisco for advice or help.

It's easy for members to assume they know what FHLBank San Francisco offers and whether its products can help with a particular scenario. But as Ng learned himself 30 years ago, FHLBank San Francisco is a partner open to collaboration and creative solutions — so it's always worth having a conversation.

"Learn more about the programs FHLBank San Francisco offers and dig deeper to find programs that fit your needs and can help you grow," Ng says. "The affordable housing credit enhancement for bond financing is a great, great program. Because we dug deeper, it helped us to get to where we are today while helping others reach further.”

If you’re interested in learning more about how FHLBank San Francisco can help your financial institution, reach out to your Relationship Manager or the Member Services Desk at (415) 616-2500.