FHLBank San Francisco Relationship Managers and FHLBank San Francisco Member Services Desk, Business Intelligence, and Capital Markets experts are highly skilled extensions of members’ teams with a value-adding perspective to help members achieve strategic goals. Their position within the industry places them at the center of a large Venn diagram of financial service products and firms, helping them act as conduits for knowledge and ideas.

Every day, FHLBank San Francisco Relationship Managers connect with treasurers, sit down with CEOs, and present funding scenarios to CFOs across Arizona, California, and Nevada. Our Relationship Managers then strategize with a team of FHLBank San Francisco experts to evaluate member needs, analyze market conditions, and create custom solutions for each member.

Developing Custom Strategies

1. ALCO preparation: A regional bank with maturing advances and a need for funding to address unexpected deposit outflows expressed preliminary interest in putable advances. We partnered with the member on their ALCO presentation to further refine and better illustrate the economic benefit of laddered putable funding structures, turning a point-in-time need into an ongoing, profitable, long-term strategy.
   
   

2. Risk management: A credit union expressed concern about slowing loan growth and sought guidance on funding structures as they evaluated asset purchases. Working with the member over several months, we continued to refine each investment and funding scenario through our own MBS investment framework to present multiple strategies aligned with the member’s risk appetite and target net yield. The resulting funding strategy combined laddered advance products to create additional margin for the member within their risk tolerance and framework.
   
   

3. Legal Day 1 balance sheet preparation: Ahead of a regulatory-approved acquisition, the acquiring member was planning to restructure the newly combined entity’s balance sheet and specifically expressed a strong preference not to carry Brokered CDs through Legal Day 1. Using information provided by both members in conjunction with Call Report data, we were able to structure an advance ladder strategy that, via offsetting asset investments, was balance sheet accretive on Legal Day 1.