The effective combined annualized dividend rate for the FHLB Des Moines on both subclasses of capital stock outstanding was 2.59 percent; however, the effective combined dividend rate on the total stock held by each member will depend on its level of activity with the Bank during the first quarter.

These dividends will total $12.9 million, which represents 47 percent of net income for the first quarter, and are expected to be paid on May 15, 2013. Average three-month LIBOR and average Federal funds rates for the first quarter 2013 were 0.29 percent and 0.14 percent, respectively.

The Bank also filed its First Quarter 2013 Form 10-Q with the Securities and Exchange Commission (SEC) on May 10, 2013. An overview of the Bank's financial results for the first quarter was provided in a Form 8-K earnings release filed with the SEC on April 29, 2013. Additional financial information is provided in the Bank's First Quarter 2013 Form 10-Q available at www.fhlbdm.com or www.sec.gov.

• Letter to our Members
• Financial Summary
• Video messages from President and CEO Dick Swanson and 2012 Board Chairman Mick Guttau
• Affordable housing highlights from Advisory Council Chair Warren Hanson
• Interactive charts featuring district and state information

View the report!

Further details regarding any necessary adjustments are addressed in the Frequently Asked Questions section below.

Frequently Asked Questions

•  Where do I find the capital stock requirement?

The Membership Stock calculation will appear on each member’s Annual Calculation of Minimum Capital Stock Requirement statement. On Tuesday, April 9, 2013, the statement will be available in the Statements section of eAdvantage.

• What verification is required and who should I notify if it is not correct?

Please verify the voting state listed for your institution on your Annual Calculation of Minimum Capital Stock Requirement statement. If the information is not correct or you have any questions, please email our Accounting Department at CapitalStock@fhlbdm.com or contact Terri Goetsch at 800.544.3452, ext. 1424 on or before April 17, 2013.

• What if my institution is required to purchase additional Membership Stock?

If additional Membership Stock must be purchased, the amount will be charged to your principal demand deposit account on Wednesday, April 24, 2013 after the close of business. Please ensure that sufficient funds are available no later than 4:30 PM on that day.

• Can my institution use excess Activity Stock to satisfy any additional Membership Stock requirements?

Activity and Membership Stock represent separate subclasses of Bank stock and are not convertible. However, your institution may use any proceeds from the excess Activity Stock repurchases to purchase additional Membership Stock.

• What if my institution has excess Membership Stock?

If your institution has any excess Membership Stock, the Bank will repurchase and deposit the excess funds in your principal demand deposit account after the close of business on Wednesday, April 24, 2013.
 

If you have questions or need assistance contact Community Investment or call 800.544.3452, ext.1173. Please see the AHP Applications and Resources page for information about the 2013 program.

Other News ... Register Today – March Member Relations Conference Call
Register today and join the Bank’s Executive Team on the Member Relations Conference call. The members-only teleconference call will be held on Thursday, March 28, 2013 from 3:00 PM – 4:00 PM (Central Time). If you any questions you want to make sure are discussed, email them to Madge Cremer or submit them during the registration.

March Member Relations Conference Call
Thursday, March 28, 2013 at 3:00 PM – 4:00 PM Central Time

FHLB Des Moines will host a members-only teleconference call on Thursday, March 28, 2013 from 3:00 PM – 4:00 PM (Central Time). There is no charge for the call, and it is open to all FHLB Des Moines members. Topics will include: 

• Financial Highlights for Year-ended December 31, 2012
• FHLBank System information
• FHLB Des Moines business news update

Click here to register.
 

Members can enroll in the program beginning January 2, 2013 and reservations will be available on a first come, first served basis through December 31, 2013. All reservations will expire by March 31, 2014. Members may reserve up to $20,000 at a time for up to 90 days. If your funds are not used at the end of 90 days, they will be made available to other members.

If you already have an open commitment from 2012, funds must be disbursed before new funds can be reserved. If you have an open commitment, all requests for reimbursement must be received by the commitment expiration date.

If you have any questions about the program, please contact Evelyn Bengtson at 800.544.3452, ext. 1064 or view the program guidelines on our website.

The effective combined annualized dividend rate for the FHLB Des Moines on both subclasses of capital stock outstanding was 2.62 percent; however, the effective combined dividend rate on the total stock held by each member will depend on its level of activity with the Bank during the third quarter.

These dividends will total $13.5 million, which represents 74 percent of net income for the third quarter, and will be paid on November 15, 2012. Average three-month LIBOR and average Federal Funds rates for the third quarter 2012 were 0.43 percent and 0.15 percent, respectively.

The Bank filed its Third Quarter 2012 Form 10-Q with the Securities and Exchange Commission (SEC) on November 9, 2012. An overview of the Bank's financial results for the third quarter was provided in a Form 8-K earnings release filed with the SEC on October 30, 2012. The Bank will hold a Member Relations Conference Call on November 16, 2012 to discuss the results. To register for the call, click here.

Additional financial information is provided in the Bank's Third Quarter 2012 Form 10-Q available at www.fhlbdm.com or www.sec.gov.

2012 Member and Independent Director Election Results
On November 8, 2012, the Board of Directors of FHLB Des Moines certified the results of the 2012 Member and Independent Director Elections. We are pleased to announce the election results for director terms commencing January 1, 2013.

Register for November Member Relations Teleconference Call

FHLB Des Moines will host a members-only teleconference call on Friday, November 16, 2012 from 2:00 PM until 3:00 PM (Central Time). There is no charge for the call, and it is open to all FHLB Des Moines members. Topics will include:

• Third Quarter 2012 financial highlights
• FHLBank System information
• FHLB Des Moines business news update

Management discussion will be brief allowing 20-30 minutes for questions and answers. Members are encouraged to provide questions during the conference call. Questions can also be emailed in advance to Megan Feld or submitted during registration.

If you have any questions regarding the member relations teleconference call, please contact Megan Feld at 515.281.1159.

Last Days to Cast Ballot for Director Elections

All ballots for the 2012 Board of Director Elections must be received by the end of day on Thursday, November 1st. For more information, please read the latest announcement sent to members on September 20, 2012.
 

Since these changes may affect your FHLB Des Moines borrowing capacity, your prompt attention is encouraged. Please review this announcement for further details or contact the Collateral Department.
 

• Each member may reserve up to a maximum of $15,000 with a minimum reserve amount of $5,000.
• Members will be notified of the status of their application within 30 days of the end of the application period.
• Forms and guidelines for the 2012 program can be accessed by visiting the Bank’s RHF page.

Please contact Evelyn Bengtson at 800.544.3452, ext. 1064 if you have any questions.

Important Changes for 2012:  Foreclosed properties are no longer eligible to receive $10,000. The maximum amount that is available to each household is $5,000.

Dividend
On August 8, 2012, the FHLB Des Moines Board of Directors approved a second quarter 2012 dividend for both the average activity-based capital stock and average membership capital stock outstanding during the quarter. The dividend approved for activity-based capital stock was at an annualized rate of 3.50 percent. The dividend approved for membership capital stock was at an annualized rate of 0.50 percent.

The effective combined annualized dividend rate for the FHLB Des Moines on both subclasses of capital stock outstanding was 2.64 percent; however, the effective combined dividend rate on the total stock held by each member will depend on its level of activity with the Bank during the second quarter.

These dividends will total $13.6 million, which represents 75 percent of net income for the second quarter, and will be paid on August 15, 2012. Average three-month LIBOR and average Federal Funds rates for the second quarter 2012 were 0.47 percent and 0.15 percent, respectively.

The Bank's Board of Directors reduced the dividend on activity-based capital stock from 4.00 percent during the first quarter of 2012 to 3.50 percent for the second quarter of 2012 given the global economic outlook for continued prolonged slow growth, the current low interest rate environment, and the reduced level of net income as compared to the first quarter of 2012. In addition, the Board believes the dividend approved for the second quarter of 2012 remains competitive, considering current returns in the market for comparable investments.
 

Financial and Business News Addressed in Member Relations Teleconference Call
Register for Member Relations Conference Call

FHLB Des Moines will host a members-only teleconference call on Friday, August 17, 2012, from 2:00 PM until 3:00 PM (Central Time). There is no charge for the call, and it is open to all FHLB Des Moines members. Topics will include: 

• Second Quarter 2012 financial highlights
• FHLBank System information
• FHLB Des Moines business news

Management discussion will be brief allowing 20-30 minutes for questions and answers. Members are encouraged to provide questions during the conference call. Questions can also be emailed in advance to Megan Feld or submitted during registration.

If you have any questions regarding the Member Relations Teleconference Call, please contact Megan Feld at 515.281.1159 or mfeld@fhlbdm.com.
 

Other News

August Member Relations Conference Call
FHLB Des Moines will host a members-only teleconference call on Friday, August 17, 2012 from 2:00 PM until 3:00 PM (Central Time). There is no charge for the call, and it is open to all FHLB Des Moines members. Read the announcement. 

Reminder: Director Election Nomination Deadline – August 1st
The nomination period to submit member director nomination certificates and independent director application forms will close on August 1, 2012. Read the announcement.

• loans secured by mortgages on commercial or residential properties encumbered by private transfer fee covenants established after February 8, 2011; and
• securities issued after February 8, 2011 by private financial entities backed by loans with mortgages on underlying properties encumbered by private transfer fee covenants established; and
• securities issued after February 8, 2011 backed by the fees from private transfer fee covenants.

A security will not be eligible for pledging if the security has one loan secured by a mortgage, regardless of its outstanding balance, containing a private transfer fee covenant.

Member Collateral Verifications (MCVs) will now include confirmation of compliance with this rule. Revised eligibility checklists for loan collateral and eligibility guidelines for securities collateral are now available on the Bank’s Members Site.

If you have any questions about the updated collateral eligibility guidelines, please contact Jodie Stephens, Collateral Risk Manager, by calling 515.281.1111 or emailing jstephens@fhlbdm.com.

What are Private Transfer Fee Covenants?
Private transfer fee covenants are contractual obligations attached to real property that requires payment be made anytime full or partial ownership of the property changes.

What are Excepted Private Transfer Fee Covenants?
Excepted private transfer fee covenants are attached to real property and obligates payment be made anytime full or partial ownership of the property changes. The transfer fees arising from these covenants are:

1. payable to nonprofit property ownership associations and IRS 501(c)(3) and 501(c)(4) organizations; and
2. used for purposes that provide direct benefit to the property encumbered with the covenant.

Individuals interested in being considered for an independent director position must submit an Independent Director Application Form to the Bank by the nomination deadline of August 1, 2012, 5:00 p.m. Central Time. The current application form prescribed by the FHFA can be found on its website at www.fhfa.gov This form may also be accessed directly at the following link: http://www.fhfa.gov/webfiles/22816/FHLB%20Independent%20Director%20Application,%20posted%2011-30-11.pdf or by clicking on the PDF document below. You may also obtain the application form on the Bank’s website.

Click here to print an Independent Director Application Form.

Independent Director Application Forms must be completed by the individual interested in being considered for an independent director seat and submitted to: Aaron Lee, General Counsel, Federal Home Loan Bank of Des Moines, 801 Walnut Street, Suite 200, Des Moines, IA 50309.

To view a schedule of key events in the 2012 Director Election Timeline, please click here. To read general information about the Bank and its Board of Directors, click here. If you did not receive a communication from SBS announcing the 2012 Election, or have questions regarding the process of submitting a nomination for a member or independent director, please contact Kim Cross at 800.544.3452, ext. 1152, or by email at kcross@fhlbdm.com.

• Members awarded funds in 2010 and 2011 may not be eligible to apply if they had more than $5,000 remaining on their grant awards as of May 31, 2012.
   
• Each member may reserve up to a maximum of $30,000 with a minimum reserve amount of $5,000. Members will be notified of the status of their application within 30 days of the end of the application period.
   
• Forms and guidelines are currently available on the Bank’s UFT page.

Program Changes

• Foreclosed properties are no longer eligible to receive $10,000.
• The maximum amount that is available to each household is $5,000.

If you need more information or have questions, please contact Evelyn Bengtson by calling 800.544.3452, ext. 1064.

The First Quarter 2012 CFR for the FHLBanks has been filed with the Federal Housing Finance Agency. A copy of this Combined Financial Report can be obtained on the Office of Finance website. To obtain a printed copy of the CFR, please email the Office of Finance at: documents@fhlb-of.com.

Dividend
On December 20, 2011, the Bank announced its intent to differentiate dividend payments between membership and activity-based capital stock, effective for the first quarter dividend paid in May 2012. The Board of Directors believes that any excess returns on capital stock above an appropriate benchmark interest rate, which are not retained for capital growth, should be returned to members that utilize the Bank's products and services. The Bank's dividend philosophy is now to pay a membership capital stock dividend similar to a benchmark rate of interest and an activity-based capital stock dividend, when possible, at least 50 basis points in excess of the membership capital stock dividend.

Consistent with this philosophy, the FHLB Des Moines Board of Directors approved a first quarter 2012 dividend for both activity-based capital stock and membership capital stock on May 10, 2012. The dividend approved for activity-based capital stock was at an annualized rate of 4.00 percent of average activity-based capital stock. The dividend approved for membership capital stock was at an annualized rate of 0.50 percent of average membership capital stock. The effective combined annualized dividend rate on both subclasses of stock outstanding was 3.02 percent; however, the effective combined dividend rate on the total stock held by each member will depend on its level of activity with the Bank during the first quarter.

These dividends will total $15.6 million, which represents 34 percent of net income for the first quarter, and will be paid on May 17, 2012. Average three-month LIBOR and average Federal funds rates for the first quarter 2012 were 0.51 percent and 0.11 percent, respectively.

Daily Repurchase of Excess Activity Stock
Effective Friday, April 27, 2012, all excess Activity Stock will be repurchased on a daily basis. The transition from a monthly to a daily repurchase of excess Activity Stock coincides with the Bank’s recent decision to differentiate dividend payments on subclasses of its stock, which will begin with the first quarter dividend payout in May 2012. Please refer to the announcement dated December 20, 2011.
 
Since excess Activity Stock will be redeemed daily, submission of a Capital Stock Redemption Form will no longer be necessary beginning April 27, 2012.
 
Annual Calculation of Required Membership Capital Stock
Each year, FHLB Des Moines calculates the amount of Membership Stock every member is required to own. The Bank’s Capital Plan requires that each member maintain Membership Stock in a dollar amount equal to 0.12% of the member’s total assets as of the preceding December 31, with a maximum of $10 million and a minimum of $10,000. Members’ total assets are based on the information FHLB Des Moines received from each member’s regulator.  Any needed adjustments to your Membership Stock Requirement as a result of the calculation will take place on Friday, April 27, 2012.
 
Further details regarding any necessary adjustments are addressed in the Questions and Answers section below.

Where do I find the capital stock requirement?

The Membership Stock calculation will appear on each member’s Annual Calculation of Minimum Capital Stock Requirement statement. On Thursday, April 12, 2012, the statement will be available in the Statements section of eAdvantage.

What verification is required and who should I notify if it is not correct?

Please verify the voting state listed for your institution on your Annual Calculation of Minimum Capital Stock Requirement statement. If the information is not correct or you have any questions, please email our Accounting Department at CapitalStock@fhlbdm.com or contact Terri Goetsch at 800.544.3452, ext. 1424 on or before April 20, 2012.

What if my institution is required to purchase additional Membership Stock?
If additional Membership Stock must be purchased, the amount will be charged to your principal demand deposit account on Friday, April 27, 2012 after the close of business. Please ensure that sufficient funds are available no later than 4:30 PM on that day.

Can my institution use excess Activity Stock to satisfy any additional Membership Stock requirements?
Activity and Membership Stock represent separate subclasses of Bank stock and are not convertible. However, your institution may use any proceeds from the excess Activity Stock repurchases to purchase additional Membership Stock.

What if my institution has excess Membership Stock?
If your institution has any excess Membership Stock, the Bank will repurchase and deposit the excess funds in your principal demand deposit account after the close of business on Friday, April 27, 2012. 

In othe News

Financial and Business News Addressed in Member Relations Teleconference Call
 
FHLB Des Moines will host a members-only teleconference call on Thursday, March 29, 2012, from 3:00 PM until 4:00 PM (Central Time). Topics will include:

• Fourth Quarter and Year End 2011 financial highlights
• FHLB Des Moines business news
• FHLBank System information
• Question and answer session

To ensure the teleconference is interactive, FHLB Des Moines management encourages members to provide questions during the conference call. Management discussion will be brief allowing 20-30 minutes for questions and answers. Register today!
 
There is no charge for the call, and it is open to all FHLB Des Moines members. FHLB Des Moines members may also submit their questions through the registration process or email questions in advance to Madge Cremer.
 
If you have any questions regarding the Member Relations Teleconference Call, please contact Madge Cremer at 515.281.1071 or at mcremer@fhlbdm.com.

A true community effort has made the construction of the opportunity center possible. During the event, CISS Executive Director, Tony Timm, spoke about the impact this project will have on Central Iowa. “This economy has wreaked havoc on some of the most vulnerable in our community. The project is an example of public-private partnerships working together to keep individuals safe and to breathe life back into households struggling to rebound from the housing crisis and job loss.”

Congressman Leonard Boswell was on hand to award the $500,000 grant. “With today’s uncertainties, many families find themselves falling on tough times. CISS provides for people in those situations. A roof over their heads, a warm meal, access to health programs – a jumpstart to getting people back on their feet,” Boswell said. “Today would not be possible without everyone’s generosity and all of us realizing the importance of caring for those in our community who are less fortunate.”

Central Iowa Shelter & Services has offered shelter and supportive services to homeless adults since 1992. Over the last 20 years, the organization has served 20,000 people. The current facility provides a warm bed for 116 people from 4:00 PM – 8:00 AM and is operating at capacity. Upon completion of the new facility, CISS will operate as a 24-hour center and will no longer have to be closed during the day. In addition to expanded capacity, CISS will have a supportive services wing that includes an education area, food pantry, clothing closet and clinic. CISS is the only emergency sheltering program in central Iowa that provides comprehensive services to homeless adults, housing for women without children and shelter without fees.

Each year, FHLB Des Moines returns 10 percent of its net income to communities throughout its district through the Affordable Housing Program. These grants assist in the development of affordable owner-occupied and rental housing for very low-to-moderate income households. During its recent AHP round, the Bank awarded $15 million in grants through its member institutions including, Freedom Financial, to fund 45 housing projects, which will help create or renovate 1,800 housing units across five states. Over $2.0 million was committed to projects in Iowa. For a complete listing of AHP grant recipients, please visit www.fhlbdm.com.
 

• Applications will be taken from April 2, 2012 thru May 15, 2012.
• The maximum AHP subsidy award will be $300,000 for a single project, subject to a limit of $30,000 for each unit assisted.
• There will be a limit of $1.0 million of approved projects per member charter in a single funding period.
• Please review the 2012 AHP Implementation Plan for program guidelines, Dates to Remember, and instruction materials on our Affordable Housing Program page.

AHP Pre-Application Forms Now Available
This year’s competitive AHP round is only a few short months away. Sponsor organizations should make sure they are ready by submitting a Pre-application Form and Feasibility Workbook located on our website at http://www.fhlbdm.com/ci_ahp.htm.

Forms are available today, February 1, 2012 and will be accepted through March 15, 2012.
 
The Pre-application Form and Feasibility Workbook can be submitted to FHLB Des Moines via email as shown on the Pre-application Form. Please include the Feasibility Workbook in the original Excel file and do not convert it to a PDF. Pre-applications must be accompanied by a Feasibility Workbook to be reviewed.
 
Take advantage of this opportunity and receive preliminary review and comment from Community Investment staff before you start the online application in April. If you have questions or need further detail, please contact the Bank’s Community Investment Department by calling 800.544.3452, ext.1173.

As your cooperative, FHLB Des Moines is committed to being a low-cost and steady funding source for your institution. Your continued support of the Bank through the use of its products is essential to its ability to remain a constant and ready source of funding in all market conditions. 

The Board of Directors recently approved the following changes to its future dividend practices which will encourage and reward use of the Bank’s products by its members.   

Differentiation of Dividend Payments 

The Bank has two subclasses of capital stock outstanding – “membership stock” which is required based on asset size of institutions that join the cooperative, and “activity stock” which is required based on the amount of business (advances, sale of loans under the MPF program, etc.) each member is doing with the Bank. Beginning in 2012, the Bank will pay dividends at a higher rate on activity stock than on membership stock. This change will be reflected in the first quarter dividend of 2012, approved and payable during the second quarter of 2012. 

The Bank believes that any excess returns on capital stock above an appropriate benchmark rate which are not used for capital growth through retained earnings should be returned to members that take advantage of the product and service offerings of their cooperative. The members that actively use their cooperative will receive a more favorable dividend payment through dividends paid on activity based capital stock. 

Going forward, when earnings are sufficient to pay dividends, the following guidelines will be taken into consideration by the Board in establishing the dividend rate on each subclass of stock: 

•  Membership Stock Dividend
  Similar to a benchmark rate of interest such as three-month LIBOR where applicable
   
• Activity Based Stock Dividend
  When possible at least 50 basis points, on an annualized basis, in excess of the membership stock dividend 

Repurchases of Excess Activity Based Capital Stock 

To coincide with the differentiation of dividend payment changes beginning in 2012, FHLB Des Moines will repurchase excess activity based capital stock on January 4, 2012. 

Additionally on January 4, 2012, the Bank will reduce its Operational Threshold for excess activity based capital stock from $50,000 to $0. The Bank will continue its practice of repurchasing all excess activity based capital stock on the 19^th of each month but reserves the right to repurchase excess activity based capital stock more frequently throughout the month and members may continue to request to have their balance repurchased down to $0 at any time. 

For questions or more information on any of these changes, please contact Terri Goetsch, accounting supervisor, 800.544.3452, ext. 1424 or your VP – Member Services. 

Statements contained in this announcement, including statements describing the objectives, projections, estimates or future predictions in the Bank's operations, may be forward-looking statements. These statements may be identified by the use of forward-looking terminology, such as anticipates, believes, could, estimate, may, should, and will or their negatives or other variations on these terms. By their nature, forward-looking statements involve risk or uncertainty and actual results could differ materially from those expressed or implied or could affect the extent to which a particular objective, projection, estimate, or prediction is realized.

• the loan’s promissory note meets the Uniform Electronic Transactions Act (UETA) “transferable record” definition, including:
  • The electronic record would be considered a note under Article 3 of the Uniform Commercial Code if the electronic record were in paper form, and
  • The issuer of the electronic record has expressly agreed at origination that it should be treated as a transferable record under the UETA

The following do not qualify as electronic notes and will not be accepted as FHLB Des Moines collateral:

• paper promissory notes that are destroyed and/or converted into electronic forms through scanning or imaging
• paper notes with facsimile signatures

UETA and the ESIGN Act together provide the legal framework for validating electronic records, signatures and contracts. Please retain evidence documenting compliance with UETA and the ESIGN Act provisions relating to consent, control and transferability for pledged electronic notes. FHLB Des Moines field staff will review this information during Member Collateral Verifications.

If a loan’s promissory note was originated on paper, you must have and retain the original paper note with ink signatures for the entire pledging period in order for it to qualify as eligible collateral.

Please contact the FHLB Des Moines Collateral staff when considering utilizing a record retention system that includes destruction of original promissory notes.

FHLB Des Moines Collateral staff is also available to answer any questions you may have regarding collateral eligibility and procedures by email, advancecollateral@fhlbdm.com, or by phone, 800.544.3452, ext. 5408.

Board Approves Third Quarter 2011 Dividend
On November 10, 2011, the Bank also filed its Third Quarter 2011 Form 10-Q with the Securities and Exchange Commission (SEC). An overview of the Bank's financial results for the three and nine month periods ended September 30, 2011 was provided in a Form 8-K earnings release filed with the SEC on October 27, 2011. The Bank will hold a Member Relations Conference Call on November 16, 2011 to discuss the results. To register for the call, click here.

Additional financial information is provided in the Bank's Third Quarter 2011 Form 10-Q or www.sec.gov.

1. All pledged securities will now be priced weekly. Currently, securities pledged by members safekeeping with FHLB Des Moines have their price updated daily. 
2. The advance equivalent value of all mortgage-backed securities (MBS) pledged will be reduced by the amount of the security’s monthly principal payment on the factor announcement date versus the actual principal payment date.  Currently, the advance equivalent value of MBS pledged by members safekeeping with FHLB Des Moines is reduced by the security’s monthly principal payment on the actual payment date, while the advance equivalent value for all other pledged MBS are adjusted on the factor announcement date

Following implementation of these collateral processing enhancements, all securities collateral will be valued and managed consistently, regardless of who is the security’s custodian.

Further information on how FHLB Des Moines values MBS collateral is available at the Collateral Pledging Toolkit.

If you haven’t done so already, please select individuals within your organization that will serve as eAdvantage securities users (link to how to guide). These individuals will perform all duties associated with pledging and releasing securities.

Further details are available on our Collateral Pledging Toolkit page. FHLB Des Moines Collateral staff is available to answer any questions you may have. If you would like additional information, please email advancecollateral@fhlbdm.com or call 800.544.3452, ext. 5408. 

Dividend
FHLB Des Moines Board of Directors has approved a second quarter 2011 dividend at an annualized rate of 3.00 percent of average capital stock. The dividend is expected to be paid on August 18, 2011. This dividend will total $16.1 million, which represents 84 percent of net income during the second quarter. Average three-month LIBOR and average Federal funds rate for the second quarter 2011 were 0.26 percent and 0.09 percent respectively.

In other news

Register Today for the Bank's Member Relations Teleconference Call
FHLB Des Moines will host a members-only teleconference call on Wednesday, August 31, 2011 from 2:30 PM until 3:30 PM (Central Time). Bank management will hold an interactive teleconference that includes:

• Second Quarter 2011 financial highlights
• Business news, including REFCORP obligations satisfaction, benefits of the Joint Capital Enhancement Agreement restricted retained earnings account, implications from the S&P downgrade of U.S. Treasury securities and GSEs, including FHLBanks, and additional business initiatives
• Question and answer session

To ensure the teleconference is interactive, FHLB Des Moines management encourages members to provide questions during the conference call. Management discussion will be brief allowing 20-30 minutes for questions and answers. Register today!

Members may also submit their questions through the registration process or email questions in advance to Madge Cremer. There is no charge for the call, and it is only open to FHLB Des Moines members. If you have any questions regarding the Member Relations Teleconference Call, please contact Madge Cremer at 515.281.1071 or at mcremer@fhlbdm.com.

• changes to the definition of an automatic termination event,
• additional provisions for determining whether an automatic termination event has occurred, and
• modifications to the provisions regarding the release of restricted retained earnings if the Agreement is terminated.

For more information about the Joint Capital Enhancement Agreement and the amendments to the Capital Plan, please refer to:

• The Bank’s 8-K filings with the Securities and Exchange Commission on March 1, 2011, and on August 5, 2011
• Joint Capital Enhancement Agreement Q&A, dated August 5, 2011
• Capital Plan, as amended and restated effective September 5, 2011

If you have any questions or comments about the capital plan amendments or the Agreement, please contact Aaron Lee at 800.544.3452, ext. 1038 or alee@fhlbdm.com.

Sincerely,
Richard S. Swanson
President & CEO

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
This bulletin contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including statements related to the potential benefits of the Agreement. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “intended,” “will,” and “expect,” or their negatives or other variations on these terms. The Bank cautions that by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, regulatory actions, future operating results, and legislative or regulatory changes. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

It’s been 79 years since the Banks were created and we continue to have a material impact on housing and economic development financing, offering funds to member institutions at rates that are usually lower than commercially competitive prices.

In honor of the 79th Anniversary, FHLB Des Moines is offering you a special Unique Funding Opportunity. Check out the information below for further details. Help us celebrate the creation of the Federal Home Loan Banks – contact the Money Desk to receive your 79th Anniversary rate right now!

79th Anniversary of the Signing of the Federal Home Loan Bank Act
Unique Funding Opportunity July 22, 2011, 2 Year Long Term Fixed Advance

• If you use a spam filtering application/service add FHLBDMvote@directvote.net to your safe sender list in the application/service interface.
• If you do not use a spam filtering application/service service simply add FHLBDMvote@directvote.net to your address book.

You may also refer to http://www.fhlbdm.com/boardwhitelist.htm for more detailed instructions, or contact Kim Cross at 515.281.1152. The SBS site is very user-friendly, but in the event you have any questions, responsive vendor support will be available Monday through Friday, 8:00 a.m. to 5:00 p.m. CDT. You may speak with an SBS representative directly at 952.974.2339 or email them at support@directvote.net for further assistance with adjusting your email filters.
 
We urge all members to utilize the electronic nomination and election format for the 2011 Director Elections.  However, we can make arrangements for institutions without access to the internet or that otherwise cannot or do not want to participate online. Such members may choose to opt-out of the electronic nomination and balloting process this year by mailing a written request to Kim Cross at the Federal Home Loan Bank of Des Moines, 801 Walnut Street, Suite 200, Des Moines, IA 50309, or emailing your request to kcross@fhlbdm.com, no later than Friday, July 8.  We will work with your institution to ensure that your nomination is submitted and votes are cast properly.
 
Finally, if you are not the correct person to receive this information please notify Kim Cross at kcross@fhlbdm.com by July 8. As always, the Bank is dedicated to serving the needs of its members. Please feel free to contact me with any comments you may have regarding the 2011 Director Elections. 

 Aaron B. Lee
 VP/General Counsel

With terms ranging from one year to 20 years and with rates at a few basis points above the Bank’s cost of funds, a CIA can be used to fund conventional or short term loans.

Visit the FHLB Des Moines website for more information on how CIA can be used in a disaster situation. Additionally, FHLB Des Moines will work with members individually on any reporting or pledging requirement deadlines as well Participating Financial Institutions in the Mortgage Partnership Finance® program that have concerns about their delivery commitments. Affected members needing additional time to meet requirements and commitments should contact their Vice President – Member Services to initiate relief. Deadlines may be extended in order to take some of the immediate pressure off affected members.

FHLB Des Moines will continue to monitor circumstances in declared disaster areas and work with our members on any issues that may develop in order to facilitate continued access to FHLB Des Moines funding. Please contact the Bank with any questions you may have at 800.544.3452 or 515.281.1000.

As noted above, the first step towards establishing a member’s maximum credit capacity with the Bank is the completion of a scorecard which is calculated using ratios and weightings. Click here for more information.

In other news

Register Today for the Bank's Member Relations Teleconference Call
FHLB Des Moines will host a members-only teleconference call on Wednesday, May 25, 2011 from 2:30 PM until 3:30 PM (Central Time). Bank management will hold an interactive teleconference that includes: 

• First Quarter 2011 financial highlights
• Business news, including public policy matters that could affect the Bank and its members
• Question and answer session

To ensure the teleconference is interactive, FHLB Des Moines management encourages members to provide questions during the conference call. Management discussion will be brief allowing 20-30 minutes for questions and answers. Register today!

Members may also submit their questions through the registration process or email questions in advance to Madge Cremer. Members will be asked to register for the call. There is no charge for the call, and it is open to all FHLB Des Moines members.

If you have any questions regarding the Member Relations Teleconference Call, please contact Madge Cremer at 515.281.1071 or at mcremer@fhlbdm.com.

• First Quarter 2011 financial highlights
• Business news, including public policy matters that could affect the Bank and its members
• Question and answer session

To ensure the teleconference is interactive, FHLB Des Moines management encourages members to provide questions during the conference call. Management discussion will be brief allowing 20-30 minutes for questions and answers. Register today!

Members may also submit their questions through the registration process or email questions in advance to Madge Cremer. Members will be asked to register for the call. There is no charge for the call, and it is open to all FHLB Des Moines members.

If you have any questions regarding the Member Relations Teleconference Call, please contact Madge Cremer at 515.281.1071 or at mcremer@fhlbdm.com.

The Bank will accept applications from May 1 through June 30, 2011. All applications must be submitted through the FHLB Des Moines online grant application system. Pre-application forms, registration forms, application instructions, training manuals and a schedule of events are available on the Community Investment page on the FHLB Des Moines website.

Program Reminders

Sponsor Registration Available Through May 31
The registration process must be completed by 4:30 PM, Tuesday, May 31 by the organization that intends to submit an application for this year’s competitive Affordable Housing Program. Members need not complete the registration unless they intend to be the sole sponsor of a project.

Pre-application Available Through April 30
Sponsors may submit a pre-application form to the Community Investment Department to receive technical assistance for their grant application until April 30, 2011. For further details, please visit the Affordable Housing Program page of our website.

In April, FHLB Des Moines calculates each member’s FHLBank Membership Stock requirement based on call report information filed as of the prior year end. Please refer to the top of your Annual Calculation of Minimum Capital Stock Requirement statement in eAdvantage for the amount of Membership Stock your institution is required to purchase or the amount of excess Membership Stock the Bank will repurchase.  

If additional Membership Stock must be purchased, the amount will be deducted from your institution’s principal demand deposit account on Tuesday, April 26, 2011 after the close of business. Please ensure that sufficient funds are available no later than 4:30 PM on Tuesday, April 26, 2011.  

If your institution has any excess Membership Stock, it will be repurchased by FHLB Des Moines and the funds will be deposited into your principal demand deposit account on Tuesday, April 26, 2011 after the close of business.  

Please note, on April 26, purchases and repurchases only apply to Membership Stock. Excess Activity Stock will not automatically be repurchased on April 26. Excess Activity Stock is typically repurchased on the 19th of each month.  

For more details please read the announcement dated Monday, April 11, 2011. If you have questions, please contact our Accounting Department at 800.544.3452, ext. 1424 or email CapitalStock@fhlbdm.com.

Where do I find the capital stock requirement?

The Membership Stock calculation will appear on each member’s Annual Calculation of Minimum Capital Stock Requirement statement. On Monday, April 11, 2011, the statement will be available in the Statements section of eAdvantage.

What verification is required and who should I notify if it is not correct?

Please verify the voting state listed for your institution on your Annual Calculation of Minimum Capital Stock Requirement statement, available April 11, 2011. If the information is not correct or you have any questions, please email our Accounting Department at CapitalStock@fhlbdm.com or contact Terri Goetsch at 800.544.3452, ext. 1424 on or before April 18, 2011.

Can FHLB Des Moines repurchase Excess Activity Based Stock that member institutions may have to satisfy any additional Membership Stock requirement? 

Typically, the Bank automatically repurchases Excess Activity Stock on the 19th of each month. If a member wants the Bank to repurchase Excess Activity Stock in conjunction with an increase in its Membership Stock requirement, the member will need to submit a Capital Stock Redemption Form (available on eAdvantage by selecting Capital Stock, Capital Stock Redemption Form).

These requests should be faxed to 515.699.1233 no later than 3:30 pm, Tuesday, April 26. These funds will then be deposited in a member’s principal demand deposit account and can be used to purchase additional required Membership Stock. 

What if my institution is required to purchase additional Membership Stock? 

If additional Membership Stock must be purchased, the amount will be charged to your principal demand deposit account on Tuesday, April 26, 2011 after the close of business. Please ensure that sufficient funds are available no later than 4:30 PM on that day. 

What if my institution has excess Membership Stock? 

If your institution has any excess Membership Stock, the Bank will repurchase and deposit the excess funds in your principal demand account after the close of business on Tuesday, April 26, 2011.

FHLB Des Moines will be holding a Member Relations Conference Call on March 23, 2011 at 2:30 PM Central Time. During that call, we will review the Bank’s financial performance as well as the aforementioned Joint Capital Enhancement Agreement and the Administration’s white paper titled, “Reforming America’s Housing Finance Market.” Your interest in the Bank’s activities and financial reports is very important to the Board and the Bank’s management team. We encourage you to register for the Member Relations Conference Call and to ask questions during the registration process or during the question and answer session.

As Congress debates the future of the government-sponsored enterprises, we will be reaching out to the members of the 112th Congress to emphasize the importance of the Federal Home Loan Bank System and the local support FHLB Des Moines provides to you and your communities in our five-state district.
As always, we remain focused on delivering value to our members by providing a variety of services to meet your needs. I would like to personally thank you for your business and continued partnership with FHLB Des Moines. We appreciate your support and are here to help you continue to play a key role in building and sustaining your communities.

Sincerely,
Richard S. Swanson
President & CEO

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
This report contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. These statements may use forward-looking terms, such as “projected,” “expects,” “may,” or their negatives or other variations on these terms. The Bank cautions that, by their nature, forward-looking statements involve risk or uncertainty and that actual results could differ materially from those expressed or implied in these forward-looking statements or could affect the extent to which a particular objective, projection, estimate, or prediction is realized. These forward-looking statements involve risks and uncertainties including, but not limited to, regulatory and accounting rule adjustments or requirements, changes in interest rates, changes in projected business volumes, changes in prepayment speeds on mortgage assets, the cost of our funding, changes in our membership profile, the withdrawal of one or more large members, competitive pressures, shifts in demand for our products, and general economic conditions. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

To be considered eligible, any PLMBS issued after July 10, 2007 or PLMBS acquired after and issued before July 10, 2007 containing subprime or nontraditional mortgage loan collateral will require certification that the underlying loan collateral meets Federal Financial Institutions Examination Council guidance on subprime and nontraditional lending.

The Qualifications For Securities Pledged As Collateral For Advances document has been updated to reflect the new requirement.
We are available to answer questions and help you through this transition. If you would like additional information, please email advancecollateral@fhlbdm.com or call 800.544.3452, ext. 5408.

• Fourth Quarter and Year Ended 2010 financial highlights
• Business news, including the Joint Capital Enhancement Agreement and the Obama Administration’s Report, “Reforming America’s Housing Finance Market”
• Question and answer session

To ensure the teleconference is interactive, FHLB Des Moines management encourages members to provide questions during the conference call. Management discussion will be brief allowing 20-30 minutes for questions and answers. Register today!

Members may also submit their questions through the registration process or email questions in advance to Madge Cremer or contact her at 515.281.1071. Members will be asked to register for the call. There is no charge for the call, and it is open to all FHLB Des Moines members.

If you have any questions regarding the Member Relations Teleconference Call, please contact Madge Cremer at 515.281.1071 or at mcremer@fhlbdm.com.

• Each member may reserve up to a maximum of $50,000 with a minimum reserve amount of $5,000.  Members will be notified of the status of their application within 30 days of the end of the application period.
• Forms and guidelines for the 2011 program will be available no later than March 1 and can be accessed by visiting the Bank’s Down Payment  Assistance Programs page.

Important changes for 2011 include:

Eligible and ineligible rehabilitation
Eligible rehabilitation should include correction of deferred maintenance and/or replacement of principal fixtures and components of existing buildings and may include roof repair or replacement, electrical repair, plumbing repair, mechanical repair or replacement, foundation or other structural repair, exterior siding replacement or paint, window and door replacement, floor coverings and wall repair and paint. Payment to the homeowner for rehabilitation labor is ineligible. Payments to friends and relatives of the homeowner for labor are ineligible, unless there is a written bid documenting costs that conform to local conditions. Any other rehabilitation must be approved in advance by the FHLB Des Moines Community Investment Department. The Bank may deny funding of any subsidy that includes rehabilitation that is not eligible, unless if was approved in advance.

Payments for counseling costs
UFT subsidies may be used to pay for counseling costs only where such costs are incurred in connection with counseling of homebuyers who actually purchase a UFT assisted unit and the cost of the counseling has not been covered by another funding source, including the member. The maximum amount that may be charged is $150 for counseling of eight hours or less and $350 for counseling exceeding eight hours.
 
Restrictions on processing fees for the Affordable Housing Program (AHP) subsidy 
Processing fees may not be charged for using UFT funds.
 
Questions?
Please contact Evelyn Bengtson at 800.544.3452, ext. 1064 or refer to the AHP Implementation Plan.


In Other News

Community Investment Advances
Effective January 1, 2011, FHLB Des Moines will allocate $100 million to a Residential Lending Advance program and $300 million to a Commercial Lending Advance program to support housing and economic development initiatives. For additional details about these programs, visit our Community Investment Advance page.
 
New Advance Products
FHLB Des Moines listened to your feedback and re-designed the Amortizing Advance and Prime Rate Advance to better fit your needs. For additional details read the letter that was mailed to members recently.

FHLB Des Moines is also updating its requirements and procedures for when members need to deliver collateral. These changes are effective immediately and will currently impact a small number of members.

These are in addition to the introduction of electronic Borrowing Base Certificates (BBCs) and loan listings that were announced prior to year-end 2010.
Since these changes may affect your FHLB Des Moines borrowing capacity, your prompt attention is encouraged. Read the letter that summarizes the changes.

Amortizing Advance

First, the Bank has listened to your feedback and expanded the current Mortgage Matched Advance. You may now structure an Amortizing Advance using amortizing periods to 30 years, maturities to 20 years and payment frequencies such as monthly, quarterly and annually.

Amortizing Advances are also available with or without the option to prepay the advance without prepayment fee after a selected period of time. Simply call the Money Desk with your desired structure and they will provide an interest rate indication. The Bank’s Amortizing Advance product line provides options that help you match fund loans and mitigate interest rate risk.

The product summary mailed to you provides further details about the product’s uses and benefits. The example provides you with rate indications of selected structures as of Wednesday, January 19, 2011. Please call the Money Desk at 800.544.3452, ext. 1013 to price your Amortizing Advance structure.

Prime Rate Advance

FHLB Des Moines has also improved its current Prime Rate Advance. The minimum advance amount has been reduced from $500,000 to $100,000 and the $10 million aggregation of orders before funding has been removed. With these changes, the Prime Rate Advance is a great tool to mitigate interest rate risk.

We continue to welcome your feedback on how we may enhance our services. Please call your Vice President – Member Services if you have any questions or comments about this communication or any of our other products and services.