1. 2016 FHLB Des Moines The Power of Partnership

2. – FHLB Des Moines Update – The Power of Partnership Partnership in Action – Advances – SBPA/Standby LOC – HFA Bonds – Exploring New Opportunities – Leadership Summit AGENDA 2

3. FHLB DES MOINES UPDATE FHLB Des Moines Overview Headquartered in Des Moines, Iowa Western Office in Seattle, Washington Supports mortgage lending, economic development and affordable housing Represented by 74 Members of Congress and 26 Senators Nearly 1,500 members $68.2 billion in advances $7.0 billion in mortgages $4.9 billion in capital Balances as of June 30, 2015

4. FHLB Des Moines Results $Millions12/31/1512/31/14Change Assets$137,381$95,524$41,857 Advances$89,173$65,168$24,005 Mortgages (Net)$6,755$6,562$193 Investments$40,167$23,079$17,088 Retained Earnings$801$720$81 Total Capital$5,625$4,312$1,313 Net Income$131$121$10 MVCS$116.9$123.8($6.9) EVCS$123.1$126.6($3.5) FHLB DES MOINES UPDATE FHLB DES MOINES 4

5. The Power of Partnership Leverage your Relationship with the FHLB Des Moines to grow, serve and strengthen your communities 5

6. Partnership in Action  $100,000,000 Daily Average Balance in advances to HFAs  $550,000,000 in outstanding Stand By Bond Purchase Agreements (SBPA)  $1,800,000,000 in HFA Bond Holdings  New Opportunities to participate in our Mortgage Partnership Finance Program (MPF) YOUR PARTNER FOR FUNDING FHLB DES MOINES 6

7. YOUR PARTNER FOR FUNDING FHLB DES MOINES 7 Ease of Use FHLB acts as lender, custodial-agent, and source of record-keeping for collateral pledged and funds borrowed Housing Associates can establish a credit line and utilize funding on a moment’s notice Competitive Pricing FHLB advances and offer lower cost alternative relative to warehouse financing, commercial paper and securitization No commitment, securitization or financing fees Out of pocket expenses limited to interest expense on borrowings and collateral/account fees associated with monthly transactions Strong Counterparty FHLB and Housing Associate interests are mutually beneficial FHLB is a AAA counterparty, committed to providing term financing based on collateral pledged Advance Products

8. YOUR PARTNER FOR FUNDING FHLB DES MOINES 8 Ease of Use FHLB requires NO collateral and acts as a guarantor of your liquidity Terms out to 7 years are available, with a total portfolio capacity of $1 billion Available to all in district HFAs Competitive Pricing FHLB has continued success in pricing and retaining contracts Strong Counterparty FHLB and Housing Associate interests are mutually beneficial FHLB is a AAA counterparty, committed to providing liquidity to investors Standby Bond Purchase Agreements

9. YOUR PARTNER FOR FUNDING FHLB DES MOINES 9 Ease of Use A Member Standby LOC can be used to improve the credit rating on Housing Associate transactions: Facilitate residential housing finance Confirming taxable and tax-exempt housing bond issuance and taxable non-housing bond issuance Utilizes Member banks collateral not Housing Associates collateral Competitive Pricing Typical costs are 30bps plus legal fees Strong Counterparty The FHLB credit standing and capital market access substitutes for that of the Member and Housing Associate which helps to ensure a wide investor acceptance FHLB is a AAA counterparty, committed to providing liquidity to investors Member Bank, Standby Letters of Credit on Behalf of Housing Associates

10. YOUR PARTNER FOR FUNDING FHLB DES MOINES 10 Ease of Use Majority of holding are private placements, Floating rate indexed notes MRB Long-term Fixed-rate MBS Pass-through Available to all in district HFAs Competitive Pricing FHLB has contained success in pricing through funding advantage in the markets Strong Counterparty FHLB and Housing Associate interests are mutually beneficial FHLB is a AAA counterparty “Held to Maturity” investor HFA Bond Purchases

11. Exploring New Partnerships for Holding or Selling Mortgages 11

12. MPF Program Products The FHLB Des Moines can hold loans on our balance sheet or sell them through to Fannie Mae, Redwood Trust or Ginnie Mae. FHLB DES MOINES MPF PROGRAM FHLB DES MOINES 12

13. YOU are in Control * Fully Delegated Lending Authority Loan is closed by lender in the lenders name Use of 3 rd Party Fulfillment Services is acceptable Competitive pricing No minimum loan amount No FHLB delivery fees Same pricing for all lenders *Lender required to meet all applicable regulatory requirements. FHLB DES MOINES MPF PROGRAM FHLB DES MOINES 13

14. * *Approximately 10% of loans randomly selected for post-close QC (Fannie Mae QC standards), subject to additional discretionary requests. MPF Direct (Jumbo) loans sold via traditional loan sales process. Conventional Loan Sales Process Customer applies for a loan You lock and close the loan Send collateral package to custodian Send complete loan file to investor Loan approved for purchase Purchase advice issued You Receive Funds You clear each deficiency Investor performs post-close QC for each loan MPF Loan Sales Process You lock and close the loan Upload ULDD 3.0 XML file to eMPF Portal Loan held by FHLBbank or sold to Pass Through Investor You send collateral package to custodian Your Customer You Investor FHLBank KEY Customer applies for a loan Mortgage Sales Option With Easier Delivery and Faster Payment You & your customer Receive Funds You & your customer receive funds FHLB DES MOINES MPF PROGRAM FHLB DES MOINES 14

15. WHAT: Two-day executive-level event featuring educational sessions and networking WHO: Financial business leaders and executives WHERE: Radisson Blu – Mall of America, Bloomington, MN Registration opens Summer 2016 and is complimentary to members of FHLB Des Moines. Secure a discounted hotel room at the Radisson Blu starting at a rate of $175/night. Call 952.881.5258 or book online using promo code FEDHOM. FHLB DES MOINES 15

16. THANKS Joel Adamo VP, Member Solutions 206.340.2433 or jadamo@fhlbdm.com www.fhlbdm.com FHLB DES MOINES 16