September 2020 - Established in 1971, Lumbee Guaranty Bank was the first Native American-owned bank in the United States, and today operates 14 locations throughout Robeson, Hoke, and Cumberland counties in North Carolina. The community bank is focused on serving the financial needs and goals of residents in its communities by delivering a full range of deposit, investment, and loan products and the most personalized customer service available. Lumbee Guaranty serves thousands of families and businesses in its footprint and holds total assets in excess of $300 million.
Lumbee Guaranty has been a member of FHLBank Atlanta for more than a decade and leverages its relationship for securities safekeeping and liquidity. Kyle R. Chavis, Chief Executive Officer, offered insights into how a trusted partnership with FHLBank Atlanta has delivered value to the bank and enabled them to take advantage of recent changes in the interest rate market.
Value of partnership
FHLBank Atlanta is a valuable partner for our bank. From efficient correspondent banking services to competitively-priced advances, the assortment of products and services provided by FHLBank Atlanta gives us a range of options from which to choose to help us with a variety of needs.
Benefits of using advances
We have used advances over the years to assist with loan funding needs. As a community bank, having a ready source of liquidity is important to us, and FHLBank Atlanta has always been a trusted partner.
Accomplishing a goal
Our most recent transaction with FHLBank Atlanta stands out, because it helped us accomplish an important short-term goal and because of the service we received. When rates fell in the first quarter of 2020, we decided to execute an investment arbitrage and secured a five-year fixed-rate advance at a competitive rate. We were able to deploy those funds in our investment portfolio and lock in an average spread of over 200 basis points. One thing that stood out with that transaction is that FHLBank Atlanta actually lowered the original rate that we were quoted due to market changes. I appreciated that attention to customer service.