FHLB FEDERAL HOME LOAN BANK OF DES MOINES PRINT. Federal Home Loan Bank of Des Moines. YOUTUBE LOGO SPECS fhlbdm.com fhlbforcommunity.

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1 FEDERAL HOME LOAN BANK OF DES MOINES FHLB S E R V I C E. P A R T N E R S H I PS. S O L U T I O N S. Federal Home Loan Bank of Des Moines 801 Walnut Street, Suite 200, Des Moines IA YOUTUBE LOGO SPECS fhlbdm.com fhlbforcommunity.com PRINT main red gradient bottom C0 M96 Y90 K2 C13 M96 Y81 K54 PMS 1795C on dark backgrounds standard standard no gradients no gradients watermark watermark stacked logo (for sharing only) stacked logo (for sharing only) PMS 1815C white black C0 M0 Y0 K0 C100 M100 Y100 K100 WHITE on light backgrounds BLACK

2 impact building strong foundations Service. Partnerships. Solutions. FHLB Des Moines serves thousands of communities and invests billions of dollars through partnerships with its member financial institutions. The Bank supports local actions by giving Midwest lenders access to funding solutions that build homes, create jobs and promote economic development. FHLB Des Moines has stood by these lenders for over 80 years because it knows that communities are more than just a place to live. The connection between families, small business owners, farmers and school children are the threads that create the fabric of a community. When every person contributes and participates, communities benefit, grow and prosper. By working side-by-side with our members, we build strong communities. Less than $100M Greater than $1B $500M-$1b $70,000, $250M-$500M $60,000,000 $50,000, total: 1, $40,000,000 $30,000, asset size of members $100M-$250M $20,000,000 3Q Q Q-2013 Advances to Members Totals in thousands

3 housing Helping Neighborhoods Thrive Because of our ability to make quick underwriting decisions, as well as our personal interaction and common sense approach to meeting loan standards, we have been able to reach customers who did not know our bank existed. Jon Kaiser, Vice President, First National Bank of Waseca, MPF Program User Creating healthy communities starts with home. The FHLBank System, made up of 12 regional cooperative Banks, was established by government charter in 1932 because home matters. ttoday, the Bank s core products and services, which promote its members active participation in the housing finance market, include: advances, purchasing of mortgage loans and affordable housing grants. Homes play a unique role in the long-term development and resiliency of communities. In Cherokee, Iowa, free lots offered by the city and low-cost construction loans from Cherokee State Bank have brought families back to the community. What a difference one year makes. A 2012 study indicated the need for more housing in the area. In response to the study, FHLB Des Moines member, Cherokee State Bank, took action. The bank offered Cherokee County residents a 2 percent new construction loan in We wanted to see continued growth in our community, said Cherokee State Bank President Mike Hunter. Our goal was to create new homes and see the area prosper as a result. To meet the goal, the bank partnered with the City of Cherokee and Cherokee Area Economic Development Corporation. The project has since taken off, with a number of new houses currently on the market or under construction. The Bank s Mortgage Partnership Finance Program is a more direct form of homeownership assistance, giving members access, often on a single-loan basis, to secondary market benefits while retaining customer relationships. Since the Bank began participating in the program, more than 280 lenders have funded $50.3 billion in mortgages assisting more than 278,000 homeowners with their financing needs. From providing better customer service to receiving a strong source of fee income, First National Bank of Waseca, Minnesota has experienced numerous benefits from MPF. The MPF program has allowed us to expand our mortgage business outside of our immediate market, said Jon Kaiser, vice president, First National Bank of Waseca. To learn more about the benefits of MPF, contact your vice president member services. Total Mortgage partnership finance loans by charter state * iowa $6.8B minnesota $7.5B missouri $3.8B North dakota $405.7M *Since inception south dakota $1.4B Mortgage Partnership Finance and MPF are registered trademarks of the Federal Home Loan Bank of Chicago.

4 tin addition to the MPF program, FHLB Des Moines members can support their community housing needs through the Strong Communities Fund. properties and homes or provide downpayment assistance to eligible families. The housing programs included in the Bank s Strong Communities Fund are the Native American Homeownership Initiative, Homeownership Fund and Competitive Affordable Housing Program. Each year, FHLB Des Moines contributes 10 percent of its net earnings to projects that will serve a wide variety of recipients, including the homeless, first-time homebuyers, elderly and families making home repairs. The funds are awarded through members who partner with community organizations to build and renovate rental Minnesota s White Earth Reservation has long suffered from inadequate funding for affordable housing. This shortage, along with substandard housing, high poverty rates, remote location, lack of economic opportunities and a growing demand for housing has created a unique challenge on the Reservation. With the help of Midwest Bank and the FHLB Des Moines Competitive Affordable Housing Program, a rehabilitation program was created to preserve single-family homes on the Reservation by providing vital repairs to homes. The project has been a huge success. People dream of owning a home. Our residents are grateful for any repairs, no matter how small, and are happy just to have a place to call their own. Jen McDougall, Executive Director, White Earth Housing Authority Total ahp grants since inception Total Grant Amount: $241,118,231 Total Development Costs: $2,345,014,268 Number of Homes: 49,381 Hope is the key to recovery and change. In St. Louis, Missouri, FHLB Des Moines member Pulaski Bank partnered with the non-profit, Places for People, to provide opportunities to those persons left homeless or disabled by chronic mental illness. This project, partially funded by a Competitive Affordable Housing Program grant, features the rehabilitation of a historic downtown property, creating affordable rental units for people living with mental illness. Also included in the Bank s Strong Communities Fund is a five-year, five-state commitment to Habitat for Humanity. Each year, a team of employees spends five days alongside members to work on the exterior of a home. In addition to volunteer hours, FHLB Des Moines makes a donation to an affiliate to finance construction. In 2012, a home was built in Winona, Minnesota and Sioux Falls, South Dakota in When civil war forced Elikana Congera and Josephina Minani to flee the country of Burundi, the family of 11 settled in Sioux Falls, South Dakota, looking for hope and dreaming of becoming homeowners. While Sioux Falls provided a safe community, far removed from their war-torn home, their housing conditions were far from perfect. The roof leaked, mold was present and the home was cold and drafty. Despite the conditions, the family worked hard and partnered with Habitat for Humanity of Greater Sioux Falls. Minnwest Bank and FHLB Des Moines joined the cause, providing the family a jumpstart on their opportunity to live out The American Dream. To take advantage of the Strong Communities Fund programs, contact the Community Investment Department by calling , ext

5 small business Driving Local Economies While housing and homeownership have been critical to FHLB Des Moines core purpose, it s important to know that the Bank s work goes well beyond housing. Congress recognized the Bank s significant value to the nation s financial system and expanded membership to all depository institutions a quarter of a century ago cementing the Bank s role as a driver for housing and economic growth. Nearly 1,200 institutions from some of the largest to the smallest across Iowa, Minnesota, Missouri, North Dakota and South Dakota use FHLB Des Moines to lower their funding costs, control risk and manage liquidity. These institutions are at the heart of their communities, willing to extend credit to the backbone of economic growth small business. kkevin Vogel has always had a passion for exotic wildlife. It was this passion that led Vogel and his wife, Kelly, to create their own business, Safari North LLC. After showing their animals at festivals, fairs and special events, the Minnesota couple decided to expand by purchasing a permanent location for a zoo. With the help of a FHLB Des Moines Community Investment Advance, through member Farmers and Merchants State Bank, the dream turned into reality. Kevin and Kelly have been customers with us since the beginning of their business venture, said Dick Eilders, ag loan officer, Farmers and Merchants State Bank. We helped them get the business started and we were here to support them when they made the decision to expand. The Bank s Community Investment Advance offers long-term loans to enrich rural or urban communities and expand affordable housing opportunities. Members can take advantage of the lower rate to foster relationships with new or existing customers to finance roads, daycares, hospitals or just matchfund larger loans. FHLB Des Moines members continue to help families and small businesses meet their goals and dreams. Community Savings Bank in Edgewood, Iowa, in particular, understands the role small businesses play in strengthening the community. While some lenders may shy away from assisting unique small business ventures, Community Savings Bank approaches these projects with an open mind. So when family-owned PromiseLand Winery was in need of a loan to fund a recent expansion, the bank used a FHLB Des Moines Community Investment Advance to help. Small businesses, such as PromiseLand Winery, are good businesses for the area and create economic value, said Brett Nagel, senior vice president, Community Savings Bank. Projects like this are important to us and are what we are all about from a grassroots perspective.

6 north dakota 76 south dakota 67 members minnesota 360 by state total: 1,187 types of members 975 FHLB Des Moines member First Farmers and Merchants National Bank in Luverne, Minnesota, used a Community Investment Advance to assist in the growing trend of green technology and renewable energy. The bank worked with Juhl Wind, Inc. on a wind turbine project that would provide the community of Woodstock, Minnesota with renewable energy. Today, it is one of the highest performing turbine projects in the area. The types of energy projects we support have a focus on meeting the needs of communities and local investors, said First Farmers and Merchants National Bank President Dale Roemmich. In terms of performance and capacity, this project has become one of the most successful in our portfolio. community investment Advance 2003-present $3.3B Funded 1,550 Housing related advances 2,196 Economic development advances Iowa 359 Missouri 325 In order to become a member of FHLB Des Moines, a financial institution must complete an application, meet eligibility requirements and purchase membership stock. Contact Member Financial Services for more information by calling , ext banks 106 credit unions thrifts insurance companies Community Development Financial Institutions 1

7 education investing in the future A community s workforce is already learning what an effective financial system requires: A reliable source of funds to provide credit and financial services to America s communities. A funding source that balances taxpayer risks with public benefits. A funding source that functions in all economic cycles in all parts of the country. The Federal Home Loan Banks meet all three of these important criteria. It is a model that works. Today s schools also have models that work to ensure students benefit from a solid financial education. Our thoughts are if we can teach them savings at an early age, it will hopefully become a habit that lasts a lifetime. tthe FHLBank model has worked so well over the past eight decades that not one Bank has ever incurred a credit loss on an advance. This remarkable record can be attributed to the full collateralization of all advances, conservative underwriting standards and strong credit monitoring policies. Starting in 1999, with the approval of the Bank s regulator, FHLB Des Moines began providing liquidity for Bank of North Dakota s (BND) federally guaranteed student loans. Bank of North Dakota uses FHLB Des Moines advances, in conjunction with other sources, to fund loans. The mission of the Bank of North Dakota is to promote agriculture, commerce and industry within their state. In 1997, BND created a loan program, Dakota Education Alternative Loan (DEAL), to provide funding for students at the University of North Dakota. In addition to offering financial assistance, the loan ensures that the state has a well-trained and educated workforce. With this vision in mind, BND teamed up with FHLB Des Moines to help students finance their higher education. The program has flourished with a portfolio of nearly 33,000 borrowers since its inception and a delinquency rate well below the national average. Through DEAL, BND has helped build the foundation for a knowledgeable and skilled workforce, ensuring the future growth and vitality of the state. Diane White, Director of Marketing, State Bank & Trust TS Bank Chief Executive Officer Mick Guttau has a saying, We don t just manage for the next quarter, we manage for the next generation. Guttau and FHLB Des Moines member TS Bank of Treynor, Iowa, have put these words in action by developing a unique financial literacy program in Treynor and Council Bluffs, Iowa. At a Council Bluffs high school, students were interviewed for positions and trained to manage a full-scale bank within their school. In Treynor, a curriculum embedded into classwork has one middle school teacher commenting that students learned to write checks, balance accounts, maintain a budget and work with others to accomplish a common goal. It was an eye opener for students, especially how they now understand their parents point of view about money. The board of directors at one bank in Nevada, Iowa, is full of youthful faces. So youthful that none of its members are old enough to drive a car or even sit in the front passenger seat. At Lil Cubs Education Bank, the employees are fourth graders and their customers are fellow students at Central Elementary. FHLB Des Moines member State Bank & Trust helped develop the program, which was awarded the Financial Education Community Betterment Award from the Iowa Bankers Association. Financial literacy has always been important to us, said Diane White, State Bank & Trust director of marketing. Our thoughts are if we can teach them savings at an early age, it will hopefully become a habit that lasts a lifetime.

8 agriculture Supporting Farms & Farmers Farming, and the jobs associated with the industry that feeds us, make it a major driver in building strong communities. FHLB Des Moines is regionally focused and controlled, so its products and programs are created specifically for Midwest financial institutions. At the same time, the Bank uses the combined size and strength of the FHLBank System to obtain funding at the lowest possible cost for members who pass that savings along to customers like new farmer Cale Kastner. nno one has a better understanding of the importance of agriculture in strengthening communities than local lenders. In Clive, Iowa, FHLB Des Moines member Peoples Trust & Savings Bank not only supports agriculture, but actively invests in the future of the industry by working with beginning farmers such as Cale Kastner of Jefferson, Iowa. According to Chad Leighty, Jefferson community market president, Peoples Trust & Savings Bank, nearly 80 percent of his portfolio in Jefferson consists of agriculture, with young farmers, such as Kastner, representing 30 percent. Peoples Trust & Savings Bank used an FHLB Des Moines Community Investment Advance to support Kastner s operation. We recognize that young farmers are the future of agriculture in rural Iowa, said Leighty. Not only are they crucial for the success of the industry, but they will become leaders in our community. Without FHLB Des Moines and its members, farmers like Kastner could not start their own operation and farmers like the Grobers could not expand. While farming and agriculture are common sights in many rural communities, one industry that was not prominent in New Hampton, Iowa was dairy farming. That recently changed when the Grober family approached State Bank & Trust about building a dairy facility in the area. The family wanted to get back to the farming and milking they had done as children and pass along the trade to their son. The family opened an account with the bank in January of 2012, and by the fall of that same year, had locked in a 20-year loan, matched by FHLB Des Moines funding. We developed a friendship with the family and knew their commitment to making this work, said Grant Anderson, executive vice president, State Bank & Trust. We believed in their vision and management, and the project has been exciting to watch. State Bank & Trust Company turned to FHLB Des Moines for a nearly instantaneous way to secure funding advances. Advances can be customized to meet members funding strategies so that they can better serve the needs of their customers. Advances can be structured at fixed and variable rates with or without embedded options and for maturities up to and including 20 years. We recognize that young farmers are the future of agriculture in rural Iowa. Not only are they crucial for the success of the industry, but they will become leaders in our community. Chad Leighty, Jefferson Community Market President, Peoples Trust & Savings Bank

9 These flexible and innovative products can help members manage interest rate risk while meeting customer needs: Fixed Rate Products Variable Rate Products Advance Availability Term Limitations Minimum Requirement Overnight None None Short-term Fixed 3 business days to less than 1 year $100,000 Amortizing Various options available $100,000 Long-term Fixed 1 year to 20 years $100,000 Indexed to 1 month, 3 month LIBOR or 6 month LIBOR for 1 year $100,000 to 10 years PRIME 6 months, 12 months, 18 months or 24 months $100,000 solutions meeting member needs Service. Partnerships. Solutions. FHLB Des Moines attractively priced funding solutions are being used right now to strengthen thousands of communities throughout its district. Through advance products, the Bank works side-by-side with its members to make their communities great places to live, work and raise a family. Structured Fixed Products Structured Variable Products Other Products Convertible Member Option Fixed Member Option Variable Capped LIBOR Letters of Credit Two-day Settlement (minimum must be met) (minimum must be met) (if application is received by 3:00 PM CST) Various options available 1 year to 20 years, member option to repay on scheduled date with five business day notice 1 year to 20 years, member option to repay on reset date with one business day notice Indexed to 1 month or 3 month LIBOR for 1 year to 10 years Up to 20 years (subject to member credit conditions) $500,000/advance with additional increments of $100,000 to be included in a pool until $5 million is reached $100,000/advance with additional increments of $100,000 $500,000/advance with additional increments of $100,000 $100,000 Liquidity starts with collateral. FHLB Des Moines members have access to one of the broadest collateral menus in the FHLBank System, including: a variety of mortgage and business loans, securities, residential and commercial real estate loans, government-guaranteed loans and time certificates of deposit. To qualify for advances, collateral must be pledged. FHLB Des Moines works closely with its members regulators to ensure safety and soundness and actively monitors the credit profiles, asset quality and creditworthiness of its members. types of collateral are available 32different to be pledged by members None 17different types of securities are available to be pledged as collateral

10 One Voice Working together Does this remind you of your community? Did your lender just walk you through your first mortgage application? Is your small business expanding? Are you a farmer just starting out? Every day, FHLB Des Moines builds communities by equipping its members with relevant products and programs. As their needs change, the Bank s business changes, but its mission extending liquidity through all economic cycles has met the test of time. FHLB Des Moines ability to adapt to changing circumstances has allowed the Bank to remain vital to its members through continually changing financial markets. By passing legislation that recognizes the evolving needs of financial institutions, Congress has affirmed and enhanced FHLB Des Moines ability to serve its members and their communities. Take an active role in shaping the policy issues facing FHLB Des Moines by joining Strengthening Communities Together, a public policy network. Get involved to preserve a model that has worked for more than 80 years at no cost to taxpayers. Join FHLB Des Moines advocacy network at Together, we can continue to build strong communities.