Each business day, East West Bank Treasurer Chris Mattern relies on key data points, such as major deposit inflows or outflows — liquidity insights essential to managing a dynamic balance sheet. Just as critical is a clear understanding of potential sources of liquidity, including borrowing capacity from FHLBank San Francisco. Real time access to this information has proven indispensable. Over the past year, FHLBank San Francisco has provided East West Bank and other member institutions with flexible, efficient advances that supported fund flow management, enabled exit from the Federal Reserve’s Bank Term Funding Program (BTFP), and facilitated rapid response to needs arising from the Los Angeles wildfire crisis.

As East West Bank CFO Christopher Del Moral-Niles often notes, FHLBank San Francisco is East West’s "bank of first resort" for balancing day-to-day and strategic funding needs. 

Innovative Uses of FHLBank San Francisco Products

When the Federal Reserve began winding down the BTFP, East West Bank exited the program by turning to FHLBank San Francisco for competitively priced, flexible, floating rate term advances.

East West Bank has also long used FHLBank San Francisco letters of credit to enhance housing and economic development bond issuances. Originally conceptualized in the 1990s by CEO Dominic Ng, this credit enhancement leverages FHLBank San Francisco's Aaa/AA+ credit rating to improve investor appeal. In 2024 alone, East West Bank used this enhancement to back $200 million in bonds, unlocking favorable pricing and liquidity. Over the past decade, the Bank has issued $2.9 billion in bonds backed by FHLBank San Francisco letters of credit, advancing critical development across its communities.

Driving Affordable Housing Through FHLBank San Francisco Program

Headquartered in California, a state facing a severe housing shortage, East West Bank has made affordable housing a core focus. In recent years, it has delivered more than $900 million in housing financing with critical support from FHLBank San Francisco’s Affordable Housing Program (AHP). In 2024, East West Bank partnered with Affordable Living for the Aging to secure a $752,500 AHP grant for Santa Fe Springs Village, a 44-unit development for very low-income seniors in Greater Los Angeles. East West Bank took an equity stake in the project, layered in federal Low-Income Housing Tax Credits (LIHTCs), and used additional borrowing from FHLBank San Francisco’s discounted  Community Investment Credit Products to ensure its success. 

Strengthening Communities with Economic Development Grants

In 2024, East West Bank successfully sponsored three FHLBank San Francisco Access to Housing and Economic Assistance for Development (AHEAD) economic development grants totaling $250,000. These supported entrepreneurship services provided by the Renaissance Entrepreneurship Center in San Francisco, the Southeast Asian Community Center in Northern California and the Semi’a Fund in Los Angeles. For more than a decade, East West Bank has paired its deep community ties with AHEAD grant funding to support nonprofit organizations with targeted investments that address pressing economic challenges in the communities it serves.

Wildfire Relief in Los Angeles – A Shared Commitment

East West Bank’s relationship with FHLBank San Francisco deepened following the Los Angeles wildfires, which caused an estimated $164 billion in damages. As a preferred bank in the arts community, East West Bank acted swiftly to assist artists, galleries, collectors, and cultural institutions, contributing over $1 million in direct relief, more than 370 bank-sponsored volunteer hours, and other forms of leadership. FHLBank San Francisco allocated $1.4 million to matching member donations through its Wildfire Relief and Recovery program, enabling East West Bank to secure an additional $50,000 in support for organizations such as the YMCA of Metropolitan Los Angeles and the Pasadena Community Foundation. 

Looking Ahead: A Partnership for Growth, Recovery and Success

As Los Angeles rebuilds and California continues to grow, East West Bank anticipates increasing reliance on FHLBank San Francisco’s resources. While core deposits remain its primary funding source, East West Bank plans to use discounted advances and letters of credit from FHLBank San Francisco to support widespread home reconstruction. These Community Investment Credit Products will help bridge gaps as rebuilding accelerates. 

"Strength and stability are core to East West’s financial stewardship, entrepreneurial mindset and community commitment,” said CEO Ng. “Our success is built on trust, purpose and shared prosperity. Our decades-long partnership with FHLBank San Francisco remains a vital part of that success.”

East West Bank is confident that FHLBank San Francisco, as its bank of first resort, will continue to deliver liquidity, resources, and expertise — just as it has for more than half a century.

Read more of our Member Stories in our 2024 Impact Report.