October 2020 - Oak View National Bank is a locally owned and managed community bank serving small business, retail, and nonprofit customers in Fauquier, Culpeper, and Rappahannock counties of central Virginia. The $280 million institution has been a shareholder of FHLBank Atlanta for more than 10 years and uses advances to manage liquidity and fund lending growth.
Mike Ewing, Vice Chairman and Chief Executive Officer of Oak View National Bank, recently shared insights on the value of advances and Oak View National Bank’s relationship with FHLBank Atlanta.
The value of a relationship with FHLBank Atlanta
Access to the capital markets would not be possible for small community banks without an intermediary such as FHLBank Atlanta. We pass along the benefits of capital market access to our customers in the form of loans that better manage their interest-rate risk. In addition to this access, we appreciate the cooperative spirit of FHLBank Atlanta because it gives us confidence that we are dealing with an institution that is looking out for our best interests.
Benefits of using FHLBank Atlanta advances
The availability of “just-in-time” funding from FHLBank Atlanta allows us to manage on-balance sheet liquidity to the bare minimum needed. This reliable off-balance sheet tool gives us access to the precise amount of funding we need on the exact day we need it, thus limiting our interest expense on excess liquidity.
Achieving a company goal
We enjoy excellent loan growth, which exceeds our ability to fund with reasonably priced deposits in the local market. Access to FHLBank Atlanta funding allows us to continue our robust loan growth and still offer reasonable CD rates. The blended interest rate is much lower than the rate we would otherwise need to pay on the CD portfolio. We manage to a 100 percent loan-to-deposit ratio thanks to FHLBank Atlanta.