Enhancing Short-Term Earnings with FHLB Des Moines Advances
last updated on Monday, February 2, 2026 in Strategies
By Brandon Casey, Member Strategist
Opportunities to increase interest income with minimal additional risk are limited. However, the Federal Home Loan Bank of Des Moines (FHLB Des Moines) offers a strategic option: utilizing short-term FHLB Des Moines advances intra month to capitalize on short-term investment opportunities.
By borrowing for up to four weeks, your institution can enhance net income while preserving balance sheet flexibility. Essentially, this approach allows you to put your available FHLB Des Moines borrowing capacity (“dry powder”) to work, generating additional earnings without materially reducing your ability to respond to unexpected liquidity needs.
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